The leached chemicals of the red mud pond at Damonjodi pollutes the surrounding environment, particularly the crop fields, where either rice or green gram and black gram were cultivated. The lethal concentration values deduced were MAC=0.2%; LC10 -1.25% and LC50 -2% leachate concentration. LC100 was found to be 2.8% leachate concentration. Experiments were conducted to find out the percentage of seed germination, seedling establishment at different concentrations of the leachate. The second set of experiment was designed to find out the impact of temperature stress on the seed germination and seedling establishment in toxic environments. It was observed that lower temperature has no significant impact on the seed germination and seedling establishment when compared to higher temperature. Higher temperature significantly affected the seed germination and seedling establishment in toxic environments.