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In this paper feasibility of recovery boiler in terms of economics and environmental impacts is studied. Recovery boilers are employed in the Pulp and Paper industry where the cooking agent is recovered by burning black liquor. Cooking agent is exhausted due to the absorption of lignin (a burnable component) in cooking agent in the process of straw cooking. The process of recovery boiler is to remove lignin by combustion from black liquor, and heat is produced during the combustion of lignin which is used to produce steam. Recovery boiler is economical as it is recovering valuable chemicals and steam is produced as a byproduct. Steam from recovery boiler is also used for concentrating weak black liquor to concentrated black liquor recovering 50% of the utility water being used at the plant. The regenerated water in the form of foul condensate is reused in the process. The recovery of hazardous chemicals also reduces load of environmental pollution. Which otherwise can pollute the water reservoirs, and regeneration of water makes it environmentally friendly plant. Construction and challenges in operation of recovery boiler such as smelt-water explosion are also discussed in this paper.