India has one of the oldest and most dynamic legal systems in the world. Long before the emergence of written Constitution and legislative enactments, ancient Indian society developed elaborate systems of governance, dispute resolution, judicial administration, and social regulation. These ideas were preserved in the Vedas, Dharmasutras, Dharmashastras, commentaries, digests, and customary practices that collectively came to be recognised as sources of dharma. Dharma represented a comprehensive principle of righteousness, duty, morality, and social order, while sources of dharma provided systematic expositions of the principles and rules applicable to different aspects of human and social life. The present study examines the nature and significance of dharma and sources of dharma as foundations of the ancient Indian legal system and analyses the principal sources through which legal norms were derived and developed.