This investigation presents the assessment of ambient air quality carried out at an open pit coal mining area in Orissa state of India. The 24-h average concentrations of suspended particulate matter (SPM), respirable particulate matter (RPM, particles of less than 10 microm aerodynamic diameter), sulphur dioxide (SO2) and oxides of nitrogen (NO(x)) were determined at regular interval throughout one year at 13 monitoring stations in residential area and four stations in mining/industrial area. During the study period, the 24-h and annual average SPM and RPM concentrations exceeded the respective standards set in the Indian ambient air quality standard (NAAQS) protocol in most of the residential and industrial areas. However, the 24-h and annual average concentrations of SO2 and NO(x) were well within the prescribed limit of the NAAQS in both residential and industrial areas. A management strategy is formulated for effective control of particulate matter at source and other mitigative measures are recommended including implementation of green belts around the sensitive areas.