Background: Tumor budding is increasingly recognized as a significant prognostic factor in various malignancies, including esophageal carcinoma. This study aims to determine the prognostic significance of tumor budding in esophageal carcinoma and its correlation with other clinicopatholigical parameters. Methods: This study utilized a mixed retrospective and prospective design spanning 5 years and 6 months and was conducted in the Department of Pathology at GMC Jammu. Tumor budding was assessed and correlated with demographic, pathological, and nodal status data. Statistical analysis was performed to identify significant associations among these variables. Results: The analysis categorized patients into low, intermediate, and high tumor budding groups, revealing several significant associations. Demographic factors, including age and gender, did not show a significant correlation with tumor budding. However, tumor size exhibited a notable relationship, with 83.3% of tumors measuring ≤3.5 cm classified as low budding (p=0.008). The World Health Organization (WHO) grade demonstrated a significant association as well; 22.2% of patients in the low budding group had Grade 1 tumors, whereas 57.1% of those in the high budding group were classified as Grade 3 (p=0.015). Furthermore, lymphovascular invasion was present in 92.9% of high tumor budding cases compared to 44.4% in the low group (p=0.014). A strong correlation was also observed with pT stage (p=0.007) and nodal involvement, underscoring the aggressive nature of tumors exhibiting high levels of budding. Conclusion: Tumor budding serves as an essential marker in the pathological evaluation of esophageal carcinoma. Its integration into clinical practice could enhance risk stratification and inform treatment decisions, ultimately improving personalized cancer care strategies.