The study was conducted to explore the perception of students towards CBCS and the challenges faced by them in the progress for successful implementation of CBCS. Convergent Parallel design of mix-method approach has been used. A total 80 students from Ravenshaw University and from affiliated urban degree colleges of Utkal University were selected as sample of the study. Self-developed perception scale and an open-ended questionnaire were administered. The collected data were analyzed by using percentage, t-test, ANOVA. The research revealed no significant difference in perception towards CBCS between boys and girls and between Arts, Science and Commerce students. Majority of student respondents (87.5%) have a favourable perception towards introduction of GPA instead of marks. Students highly recommended for the provision of credit transfer system, employment-based skill enhancement courses, internal exams, appointment of student advisor and flexibility to study at different times and different institutions to complete one course and scope to transfer credits from one institution to other. Majority of Students highly satisfied with the semester system of examination, flexibility in subject selection, continuous comprehensive evaluation and skill enhancement courses. The study revealed some problem which are faced by students in the successful implementation of Choice Based Credit System such as; overburden of course, workload, exam oriented, inadequate library and infrastructure, absence of specialized teachers and references, text books. The findings of the present study yielded the necessity of developing strategies by all the stakeholders for successful implementation of Choice Based Credit System.