The present study emphasizes impacts of habitat modification of urban wetland on plant species composition in rapidly developed Pune suburban area. Earlier Pune urban wetlands were rich ecosystems providing a habitat for a wide variety of aquatic life. Recently it has been influenced by many factors like habitat loss, overgrazing, high human population pressure and new trend in urban development around the lake. 173 aquatic macrophytes were reported from selected wetlands i.e. Pashan Lake (121) followed by Bhosari Lake (93), Akurdi Lake (86) and Katraj Lake (67). When compared with previous literature it shows net 100% loss of wetland area in case of Bhosari Lake. The phytosociological parameters shows relationships between plant communities and species composition. There was a positive correlation between water quality and composition of macrophyte species and direct correlation between anthropogenic activities and number and composition of macrophytes. The existing and potential effects of wetland activities on adjacent and other ecosystems were considered while preparing the management plan for the eco-restoration of Pashan Lake.