The rain-swollen river has inundated Laudipur, Gajjpur, Burj, Nangli, Dasdgrain, Hariwal, Nikkuwal, Mehandli Kalan and Saini Majra, from where thousands have fled.
Several acres of farmland have also been flooded. Villages of Ferozepur and Nawanshahar districts are also reeled under the flooding.
While relief centres have been set up to house the flood victims, efforts are on to plug the breach.
With water flooding the railway tracks, trains have been diverted from Ferozepur.
Besides rains, Sutlej has been receiving a massive influx of water since Aug 21 from the 225-metre Bhakra Dam to maintain water level in the latter.