This article explores the evolution of political institutions in Ancient India, with a specific focus on literary sources. It begins by examining the historiographical debates surrounding the value of literary texts in reconstructing India's early political history—a discourse that gained prominence during the colonial period when modern historical writing began in India. Colonial historians such as James Mill and Murray John were largely dismissive of indigenous literary sources, arguing that texts like the Vedas, Smritis, and Puranas were too religious or mythological in nature to be considered reliable historical evidence. In contrast, nationalist historians such as K. P. Jayaswal and Hemchandra Raychaudhuri challenged this view, asserting the historical value of these texts when interpreted critically. The article also addresses the limitations of the available sources, particularly the lack of contemporaneous records prior to Alexander’s invasion of India. Most early literary sources are theological or ethical compositions rather than chronological historical narratives. Despite this, they offer important insights into social organization, political ideas, and the institution of kingship in early Indian society. Accordingly, this article examines the political evolution of various ancient dynasties, the rise of monarchy, and the ideological foundations of kingship as reflected in these literary traditions.