Defence Cooperation is the pinnacle of Strategic Relationship between any two countries. Synergy between economic, diplomatic, and military cooperation is required to achieve national objectives. Indian Armed Forces are amongst the largest in the world and recognised professionally with well-established institutions. It is, therefore, only prudent that we use them to our advantage even during peace time. While India has undertaken Defence Cooperation in the South Asian Region for many years, it may fall short of a well-coordinated effort. The challenges associated with Defence Cooperation by India in South Asia need an appraisal. An important aspect that is required to be analysed is as to what should be the optimum policy of India for Defence Cooperation in South Asia.