The purpose of the current study was to explore the learners‟ and their teachers‟ perceptions towards the use of Urdu language in English as a foreign language classroom at degree level. Moreover, it was also anticipated to investigate whether there were resemblances or dissimilarities in the way learners and teachers observe the use of Urdu in English language classroom settings. Through this study the researcher tried to uncover the intentions and reasons for which the learners and teachers make use of Urdu in their English language classroom inside and outside activities and similarly, to indicate the situations and the actions in which they choose for not using their L1. To find out an obvious understanding of this subject matter, the study focused on the 156 teachers and the 577 students who were teaching and learning English at graduation level in different public sector colleges and universities of the Southern Punjab, Pakistan. There were three sources of data collection applied for the study: Classroom observation, interviews and questionnaires. The data was analyzed through SPSS (statistical package for social sciences).Data were analyzed using descriptive analyses, Analysis of variance (ANOVA), T-Test and Cronbach‟s alpha. The results of the study indicated that the learners and the teachers showed highly positive perceptions regarding the use of L1 in L2 classroom. The majority of the respondents preferred using Urdu in certain situations for specific reasons such as while learning about grammar and its usage in L2 classroom, discussing course policies, attendance, and other administrative information, explaining some difficult concepts, to give directions about exams and in introducing the aim of the lesson, to discuss tests, quizzes, and other assignments appropriately. Similarly, they were highly motivated to use Urdu while teaching and comprehending summaries and short questions, letter writing and paraphrasing the text in BA/BSc and B.Com courses. Although most of the learners and their teachers revealed a lot of mutual understanding on various points and situations yet there were some points on which they disagreed such as excessive use of L1 reduces their proficiency and fluency level in L2. So, to bridge up this gulf between the two stake holders and to make the teaching/learning practices fruitful the judicious use of L1 may facilitate this process rather it would be proved as a language barrier in EFL classroom.