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Numerous highway project works are going on in India at this juncture. Land Acquisition for this construction is one of the key factors for the timely completion of the project. The research here focuses on the key aspect of land acquisition and on the methods of valuation adopted for deciding the compensation to be paid to the owners. The process of acquisition is well defined with the set of standards and rules well placed by the government, and yet many issues are faced and bottlenecks observed in the process. This research focuses on first identifying the various problems in the area and then based on them propose recommendations. The literature review included a thorough understanding of the guidelines and acts of the government and also reading of research papers in this domain. The research methodology mainly focussed on the primary and secondary data collection. Primary data included meetings/interviews, case study and a questionnaire survey. The case study of a currently under construction national highway project helped to see the work on a live site. The issues faced, the phase at which the issues are faced and also the various factors that should be considered for the valuation of a property/land were all discussed and validated through a questionnaire survey. The other secondary data collected was all compiled and analysed. The data from the questionnaire survey was analysed using the Relative Importance Index method and the results were obtained. The study helped identify the major issues in various fields of acquisition and valuation and solid recommendations could be made to bring potential improvements in the area.