Context: Our country India is having 919.17 million cell phone users; currently this is the second largest number of cell phone users after China. The youth spend a good amount on talk time and purchasing cell phone handsets. Discarding of cell phone is another issue which needs attention because of generation of e-wastes, which leads to environmental pollution. Aim: To assess economic burden and practice of cell phone disposal among medical students. Methodology: It is a cross-sectional study where self filled questionnaire were given to randomly chosen students. Results: Out of total 311 participants, 133 were males and 178 were females. Mean monthly expenditure of students was Rs. 2787. Out of 311 students only 2 (0.64%) boys were not using cell phones. It was observed that boys are more inclined towards cell phone than girls, as number of previous handsets, money spent on buying handsets and therefore average monthly costs of handsets were significantly higher among boys than girls. Most common reason for frequent changing of handsets was that they were outdated (46.14%). 47.13% of handsets were disposed by exchanging or giving to somebody for use, but 36.57% of handsets were lying waste or thrown away. Conclusion: As noticed that a good amount of money was spent on cell phones, students and parents should be counseled regarding cost effective use of cell phone. An effort should be made to dispose off handset in environment friendly way, which can be done by creating awareness about collection centers and strengthening collection chain.