The usage of celebrity endorsement strategy for promoting products and services has increased dramatically in the recent time. In fast changing world, customers avoid to notice advertisements while going through the newspapers or watching television programs. But in such an environment also, the glamour and aura of a celebrity seldom goes unnoticed. As the acceptance of promotion of products and services by marketers through celebrity endorsement is rising, it's interesting to study and focus on issues arising with this practice. There are incidents occurred where celebrity endorser, ambassador got in scandal or embarrassing state unanticipated incident, which could result in risky environment for endorsed brand, and marketer. The paper tries to draw attention towards risk and issues in promotion of brands by celebrity endorsement; and identify such incidents. The study is exploratory in nature and selected cases are used for analysis. The paper throws light on the importance of considering the risk, issues in decision making of promotion of brands by celebrity endorsers, ambassadors and concludes that there are issues and risk in promotion of brands by celebrity endorsement strategy.