Eutrophication of the urban water bodies is one the biggest challenge causing severe ecological and economic loss. Urban ponds are more prone to eutrophication due to their small size and polluted catchment areas. Biomonitoring using phytoplankton provides cost-effective estimation of the level of eutrophication. Ten urban ponds in different areas of the Mumbai city were chosen to investigate the phytoplankton community structure, and level of eutrophication. We assessed the 3 algal indices viz. Shannon-Wiener indices, Palmer and Nygard's (Myxophycean and diatom) indices. Linear relationship of these indices was tested against Carlson trophic state indices in order to assess the effectiveness of these indices to measure the degree of eutrophication in urban lakes. All ten lakes were found to be eutrophic, of which two were very low eutrophic (TSI – 53.74-53.95), four were low-mid eutrophic (TSI – 55.18 – 57.5), and four lakes were mid eutrophic (TSI 61.4 – 62.2). Shannon-Wiener indices (r= -0.73) and Myxophycean indices (r= 0.77) showed strong correlation with TSI whereas Diatom indices (r= -0.12) and Palmer’s Algal Pollution Indices (r= - 0.47) showed weak correlation with TSI. Thus study found that Shannon-Wiener indices and Myxophycean indices are reliable and cost effective means to assess the eutrophication of urban ponds in Mumbai.