Introduction: Tobacco use is a major public health problem globally. According to the WHO, tobacco is the second most important cause of death in the world. Tobacco is used in different forms: smoke and smokeless. In India, people also consume beetle nut along with tobacco, causing more harmful effects. The present study was done to determine prevalence of tobacco use in industrial workers and associate it with the prevalence of oral premalignant lesions. Methodology: A cross-sectional observational study of 909 industrial workers working in 4 industries was undertaken from March 2014 to October 2014. Cases who had consumed tobacco in either form for over a year were included. Sociodemographic history and the history of current and past tobacco consumption were recorded. The oral cavity was examined for premalignancy. Results: Of 909 subjects, 537 (59.1%) had a history of consuming tobacco; of which, 360 (39.6%) were consumers of smokeless tobacco (SLT) and 141 (15.5%) were smokers. Oral premalignant lesions were present in around 52% of the study population that was exposed to tobacco, amongst which tobacco quid lesion was the most common (10.9%) followed by oral submucous fibrosis (9.8%). OSMF was seen more in beetle nut chewers. The odds of developing an oral premalignant lesion as a result of exposure to tobacco are 43.62 times more than the odds of acquiring a lesion without exposure. Conclusion: Tobacco consumption in any form is hazardous and causes various kinds of oral premalignant lesions. Beetle nut exposure causes more harmful effect which goes unnoticed. Awareness should be created about various lesions caused by tobacco as well as beetle nut and special steps should be taken for early diagnosis and its treatment.