The article focuses on the evolution of cyber forensics and challenges faced by the forensic experts. Cyber forensics has become a key investigative component of law enforcement and businesses, often used by the military and intelligence communities in mission-critical operations. It has become imperative that investigators recognize any sign of intrusion into any data, as sophisticated hackers can conceal evidence of system break-ins relatively easily. As the number and complexity of computer crimes increase, investigators realize the need for better evidence acquisition techniques and advanced tools for automated data analysis. Meanwhile, cyber forensics has evolved into an area that will require increasing emphasis in the future. As all segments of society become more dependent upon networking and information technology, this same technology becomes an increasingly tempting target for malicious activity. To make the systems more robust and resilient against this threat, there is a need for new and improved ways to diagnose malicious system events.