Although the importance of urban lake ecosystem services is widely recognised, the integration of associated values and benefits into decision-making is still under-developed. Therefore, this study has assessed the use and non-use values of two urban lakes viz., Ukkadam Big Lake (UBL) and Sulur Lake (SL) in Coimbatore, Tamil Nadu. Primary data were collected from 208 respondents, comprising fishermen, local residents, and visitors, during 2021–22. The estimated total economic value (TEV) was Rs. 107.96 lakhs and Rs. 77.15 lakhs, for UBL and SL, respectively, of which, three-fourth of the value was accounted by use values and the remaining one-fourth by non-use value services. Among use values, the provisional services were estimated at current market prices ranging from 8 to 11 per cent of TEV. The value of recreational services was assessed by the travel cost method and the estimated value was Rs. 75.85 lakhs and Rs. 49.92 lakhs for UBL and SL. The non-use values were assessed using the contingent valuation method, and the mean willingness to pay was found to be Rs. 979.63 and Rs. 801.23, respectively, for UBL and SL per annum. Logit regression estimates indicated that age, education, and income significantly influenced the willingness to pay for the lake’s services. It is concluded that all stakeholders, including the government, should consider the conservation of the lakes by making the necessary efforts to charge entrance fees, desilt the lake, install more sewage plants, and allocate a sufficient budget under the smart city plan.