Abstract: The present disclosure is related in general to software testing and a method and a system for generating a valid set of test configurations for test scenarios. A test configuration generation system retrieves one or more test parameters from each of one or more test scenarios associated with a corresponding requirement and a requirement criticality. Further, the test configuration generation system identities data values corresponding to each of the one or more test parameters. Further, it generates a valid set of test configurations for each test scenario based on requirement risk and eliminates one or more invalid test configuration combinations detected and finally a valid set of test configurations for each test scenario is generated. The present disclosure ensures right coverage with right set of configurations that can be executed within the limited time available and reduces 80% of manual efforts in generating the test configurations.