Dharma played a significant role in ancient Indian political thought. Dharma served as the basic moral and ethical principle in running administration of a rular. It teaches the principles of non-violence, common welfare, justice, equality, peace, harmony and so on. Dharma shapes the behavior of rulars. It defines a person's role and duty in life. Bhagawat Gita says Karma is Dharma. Dharma has been playing cornerstone of Indian political thought, shaping governance, politics and ethical debates. There is a great relevance of dharma in today' s perspectives too. Through this paper an attempt has been made to explain the central role of Dharma in ancient Indian political thought, particularly as articulate in texts like Arthashastra, Manusmriti, Mahabharata, Ramayana and Upanishada.  Secondary sources of data have been followed in this study.