The big cat emerged from the Kamdanam forest and ran into a house in Shadnagar town in Telangana state, said Dr. Mohammad Abdul Hakeem, a wildlife official.
After people were evacuated from the immediate area, wildlife officials worked to catch the animal and residents swarmed to watch and snap photos. A video shot by a resident showed the leopard resting on the terrace of a house.
"The leopard was transported to the zoo, where it will be kept under observation and released back into the forests after couple of days," said Hakeem.
Deadly conflict between humans and animals has increased in recent years in India largely due to shrinking forest habitats and urban expansion.
According to official data, 224 people in India were killed in the last five years by tigers.
India is home to 70% of tigers in the world.