Hindi-Punjabi being closely related language pair (Goyal V. and Lehal ., 2008) , Hybrid Machine Translation approach has been used for developing Hindi to Punjabi Machine Translation System. Non-availability of lexical resources, spelling variations in the source language text, source text ambiguous words, named entity recognition and collocations are the major challenges faced while developing this syetm. The key activities involved during translation process are preprocessing, translation engine and post processing. .