All over the world, application of space technologies is considered as vital tools for ensuring development in the social, economic and environmental areas. The major spacefaring nations grow their economies, science, technology and security using space. Predominantly, events for economic growth through space exploration are capturing the attention in the international arena. The steady increase in space activities indicates that space law and policies have become significant for a large number of countries. However, the expanding circle of spacefaring nations, commercialization by the public, private entities and privation of political willingness of influential countries also denote the new concern to the peaceful use of space, maintaining space safety, security and sustainability. The existing legal protection towards the peaceful and sustainable uses of space is not well-organized and competent. Particularly, the issues of commercialization of space not been fully agreed upon. The goal of this paper is to examine the shortcomings of present regimes and legal challenges to the sustainable use of space, identifying that there is an urgent necessity for effective and more comprehensive regime not just at the international level, but also at the national level.