The individuals on the ground nowadays often observe objects distantly hover over the sky, which raises the question of who might be operating the object or what the object might record. Unmanned Aircraft Systems (UAS) or Drones today have quickly penetrated civilian, military, and commercial sectors. The drones or UAS, with the advancement of technology, are now capable of traversing long distances, having long endurance, and having multipurpose functionality. The UAS industry is fast expanding, with trade investment touching the billion-dollar mark in flourishing economies. The advent of the Covid 19 pandemic saw a steep rise in the use of UAS across the world. The world is moving towards a liberalized regulatory approach to promote and accelerate the UAS within the aviation ecosystem. The UAS ecosystem provides access to advanced aircraft technology coupled with vast economic opportunity, but the same is not devoid of challenges. The study looks at aspects of privacy, persistence surveillance, data protection, and safety that have emerged as pertinent challenges to the UAS ecosystem. The study has analyzed the case laws that have influenced the regulatory approach, policy initiatives. The study has also looked at stakeholders’ initiatives to navigate the challenges to strengthen the UAS ecosystem.