By disrupting the conventional lending industry, Peer-to-Peer (P2P) Lending is a game-changer for financial inclusion. By leveraging technology and connecting lenders directly with borrowers, P2P lending platforms eliminate the need for intermediaries like banks. This empowers underprivileged to have greater access to the services offered by the financial institutions. This increased access to credit encourages economic inclusion, stimulates entrepreneurial activity, and promotes financial empowerment for those who were previously excluded from traditional banking channels. This study explores the opportunities and risks associated with P2P lending in the context of financial inclusion and emphasizes the need for robust regulatory frameworks, effective risk assessment mechanisms, transparent practices, investor and borrower protection measures, financial literacy initiatives, and collaboration among stakeholders. By implementing these suggestions, P2P lending can become a powerful tool for promoting financial inclusion while mitigating risks. Policymakers, regulators, P2P lending platforms, and participants must collaborate to harness the potential of P2P lending and create a more inclusive and sustainable financial landscape.