The pink bollworm Pectinophora gossypiella (Saundars) (Lepidoptera: Gelechidae) has recently emerged as a serious menace on Bt cotton in India. Extensive roving surveys were conducted in 83 locations spread across 16 major cotton growing districts of Maharashtra State, India to assess the level of pink bollworm infestation in Bt cotton. The dynamics and severity of pink bollworm damage during the different stages of boll development (90–130 days of crop age) were assessed based on random sampling of green bolls, opened bolls and picked bolls per plant and number of locules damaged per boll. Survey results revealed a widespread infestation of pink bollworm on Bt cotton across the surveyed sites in a range of 40–95% which accounts for anticipated yield losses between 20 and 30%. A typical pattern of progressive increase in the level of pink bollworm infestation and intensification of locular damage with the advancement of the crop season was observed. The pink bollworm hitherto was supposed to be under control since the introduction of Bt cotton in India, now it appears to be widespread, especially on Bt cotton throughout the cotton growing areas of Maharashtra State which shares approximately 36% and 25% of the country’s cotton area and production, respectively. This article discusses the implications of serious outbreak of pink bollworm infestations in Bt cotton and also suggest measures necessary to mitigate its potential threat to Indian cotton production. The modulation of management practices aimed at manipulation of cotton cropping pattern being followed in the country in general and Maharashtra in particular could strengthen the management of pink bollworm populations effectively. We discuss the practicality of several management options aimed at achieving this goal.