The pattern of landuse change of a city may leads to the gradual degradation of the environment. Again environmental condition of a city may define the landuse of that city. The pattern of landuse of Narayanganj city is rapidly changing. With this the status of water, sound and solid waste management are also deteriorating. Narayanganj, as a city merges with the characteristics of Dhaka mega city, facing a momentum of economic growth. This momentum has altered the landuse pattern of the area. The current research has analysed the nexus between landuse change and environmental degradation of Narayanganj municipality area. The study finds that a significant change has been occurred in landuse pattern of the city is the conversion of agricultural land into settlements and other urban uses. The experimental results and the degree of respondents'' satisfaction on the environment of Narayanganj city are nearly same. Finally, it is found that the intensive landuse of the city is mainly responsible for gradual degradation of physical environment.