Kolleru Lake, one of India’s largest freshwater wetlands and a designated Ramsar Site, supports a diverse assemblage of resident and migratory waterbirds. This review synthesizes decades of ecological research to assess avian diversity, habitat utilization, and the impacts of anthropogenic pressures on the lake’s ecological integrity. Studies conducted between 1980 and 2020 report over 230 bird species across 17 orders, including six globally threatened and twenty near-threatened species. However, large-scale habitat transformation caused by aquaculture expansion, agricultural runoff, and hydrological alteration has led to significant fluctuations in species richness and habitat availability. Remote sensing analyses reveal extensive conversion of open-water zones to fishponds, resulting in eutrophication, weed proliferation, and fragmentation of breeding and feeding habitats. Conservation initiatives such as “Operation Kolleru” temporarily restored wetland conditions and enhanced migratory bird populations, yet unregulated land use continues to threaten long-term stability. The synthesis highlights the importance of maintaining habitat heterogeneity, enforcing conservation regulations, and promoting community-based management. Sustained monitoring of avian diversity, coupled with habitat restoration and integrated watershed management, is crucial to preserving the ecological and ornithological significance of Kolleru Lake.