Visible and infrared remote sensing have been proved to be a successful tool for monitoring various atmospheric and oceanic parameters. The IRS-P4 satellite, which was launched in 1999, carries on-board the Ocean Color Monitor (OCM) sensor. OCM with a total of 8 bands with wavelengths ranging from 412-865 nm, has been designed for remote sensing of ocean and atmosphere. In the present study, atmospheric correction has been carried out to retrieve the ocean parameters like chlorophyll concentration and suspended sediment concentration in the Arabian Sea and the Bay of Bengal. From the atmospheric contribution, the aerosol parameters and column water vapor have been computed. Temporal and spatial variability of aerosol optical depth (AOD) and aerosol size distribution have been studied over the Arabian Sea and the Bay of Bengal. AOD shows minimum value during January-February and increases during summer over both the ocean. AOD also decreases away from the coast to the remote ocean. The coastal regions suffer from the turbidity. Especially in the bay regions, retrieval of AOD is very difficult. A new approach has been taken to retrieve AOD over such regions assuming quasi-homogeneous effects for the correction of water-leaving radiance with soil particles at 412 nm. The results show that the data is continuous from the target regions to the surrounding regions. Aerosol size distribution shows 3 types of particles, of which the lowest radius value, is attributed to the background. The highest value is attributed to coastal aerosols, whereas, the moderate size is typical of marine aerosols. The total column water vapor (TCW) shows a systematic pattern, which shows good correlation with the monsoon. The variability of aerosol parameters has been discussed in view of the wind pattern over these regions. The variability of chlorophyll and suspended sediment concentrations have been discussed and compared in the Arabian Sea and the Bay of Bengal. The results discussed in the present thesis show the potentiality of OCM data to study the variability of atmospheric and oceanic parameters for better understanding of ocean-atmosphere interaction.