Abstract: The Indian Knowledge System (IKS) signifies a rich, diverse, and multifaceted body of knowledge that has evolved over thousands of years, includes a wide spread array of disciplines like philosophy, mathematics, science, arts, and ethics. IKS, which prioritized holistic, ethical, and spiritual development in addition to intellectual advancement, served as the historical cornerstone of Indian education. IKS, which has its roots in the intellectual and cultural traditions of ancient India, has had a significant impact on how knowledge was transmitted and adaptation took place within society. However, Western approaches have had a major influence on the Indian educational system in recent decades. Western educational approaches, which emphasize an organized, practical approach to knowledge, have largely influenced Indian education in the modern era. The potential of IKS to enhance modern education by promoting sustainability, cultural identity, and critical thinking has come back into prominence as interest in holistic education has grown. However, in this modern era, which is marked by fast technological development and globalization, it is more crucial than ever to integrate and preserve IKS inside modern educational systems. This research paper examines the significance of Indian Knowledge System (IKS) in the modern Indian education system, focusing on its importance and contribution to addressing the gaps in modern education. Moreover, it explores how integrating IKS into the current educational system might create learning environments that are sustainable, ethical, and holistic, fostering intellectual and personal growth.