Disclosed is a system for debugging the network environment under regression testing. Initially, a data receiving module receives data pertaining to the network environment. An extraction module extracts a plurality of features by using a parser. An identification module identifies an error as a Problem Report (PR) or a False Failure (FF) based on classification of a test case execution log and a similarity confidence. The test case execution log may be classified based on comparison of a predefined pattern with an error pattern of the test case execution log. A generation module may generate second test case based on the plurality of features, a predefined set of instructions and the error pattern associated with the test case execution log by using a K-means and a Nearest Neighbour algorithm. A debugging module debugs the network environment based on execution of a test case.