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The recent fluctuations in abundance of the Indian oil sardine Sardinella longiceps, a tropical small pelagic clupeid fish, was investigated in the light of overfishing and variations in its habitat ecology in southeastern Arabian Sea. In 2012, its landings peaked to an all-time record making it the fifth largest sardine fishery in the world, and within 3 years the catches were reduced to nearly a tenth of that level. This study examined the fishery dependant factors such as effort, catch rates and expansion of fishing area; the biological variations in fish size, maturity and recruitment; and tried to relate this to the environmental variations in the sardine habitat and food availability. The 2012 mega harvest was a result of a 2-time increase in gear size and engine capacity of fishing crafts and a 3.7-time increase in fishing effort. The female maturation process was strongly influenced primarily by rainfall and then by upwelling and the resulting influx of cold nutrient-rich water in the habitat from April much before the start of the monsoon in June. After 2013, the weak monsoons and the 2015 El Nino Southern Oscillation resulted in a warmer (by an average of 1.1°C) period which negatively impacted the maturation process. The abundance of jellyfishes which are larval and young fish predators in the habitat negatively affected recruitment after 2013. The mismatch in timing of phytoplankton productivity and sardine larvae in the habitat also affected the recruitment success. These environmental divergences coupled with the excessive capture (beyond maximum sustainable yields) of spawning stock and juveniles from 2010 has resulted in this biological catastrophe which has affected the livelihood of thousands of small-scale fishers. A more responsive fisheries administration with timely restriction on fishing effort and protection of spawning stocks by way of fishery closure would have helped minimize the impacts.