The declining trends in water levels and degrading water quality in most parts of India are major concerns which need to be addressed. A hydrochemical study was carried out in parts of southwest Punjab, India to understand the groundwater quality and its suitability for drinking and agriculture under changing hydrogeological conditions and land-use patterns. The hydrochemical results suggest that most locations have water quality that is unfit for its use for both drinking and irrigational activities; 20% of samples from Muktsar were fit for drinking in both seasons, whereas in Faridkot district 39% of samples were fit for drinking purposes, which increased to 63% in the postmonsoon season with respect to total dissolved solids (TDS). Based on the hardness, 95% of samples from both seasons were unfit for drinking purposes in Muktsar district, whereas all samples were unfit for drinking in both seasons in Faridkot district. Based on the electrical  conductivity (EC), more than 20% of samples were in the doubtful category and 57% were unfit for drinking during the premonsoon season in Muktsar district. During the postmonsoon season the percentage of samples in the permissible category increased from 19% to 35%, which could be attributed to dilution by rain water. In Faridkot district, drinking water suitability decreased from 52% to 42%. The groundwater in these two districts has high salinity, sodium hazards, and is contaminated by nitrate and sulfate. The study highlights the need to monitor the contaminant spread periodically and optimize the cropping pattern as well as exploitation of water resources to achieve sustainable water quality and quantity in this region.