Background: Colorectal cancer (CRC) is a heterogeneous disease with varying clinical outcomes. Tumor budding, defined as the presence of individual or small clusters of tumor cells at the invasive front of the tumor, has emerged as a significant histopathological marker. This study aimed to assess the associations between tumor budding and various clinicopathological parameters in CRC, emphasizing its potential as a prognostic indicator. Methods: This study followed a retrospective and prospective design over a period of 5 years and 6 months. It was conducted at the Department of Pathology, GMC Jammu on CRC patients to evaluate tumor budding and its correlation with histopathological factors such as tumor size, histological grade, lymphovascular invasion, nodal involvement, and extent of invasion (pT stage). Results: The study revealed a significant association between tumor budding and histological grade (p=0.005), with higher tumor budding observed in poorly differentiated (Grade 3) tumors. Lymphovascular invasion (LVI) was present in 39.1% of cases and was strongly correlated with high tumor budding (p=0.001). Additionally, nodal involvement (N status) showed a significant association with tumor budding (p<0.001), with all patients exhibiting N2 status demonstrating high tumor budding. While no statistically significant association was found between tumor budding and tumor size (p=0.156) or pT stage (p=0.321), there was a trend toward increased budding in larger and more advanced tumors. Conclusion: Tumor budding is a valuable histopathological marker in CRC, significantly associated with higher histological grade, lymphovascular invasion, and nodal involvement. These findings suggest that tumor budding reflects tumor aggressiveness and may serve as a prognostic factor, aiding in clinical decision-making and guiding the use of adjuvant therapies.