The National Education Policy 2020 represents a significant transformation in India’s educational system by emphasising the integration of Indian Knowledge Systems (IKS) as a key component of holistic, multidisciplinary, and culturally grounded education. Recognising the rich intellectual heritage of India, the policy seeks to incorporate traditional knowledge from diverse fields such as philosophy, science, arts, and ethics into contemporary educational practices. This study explores the historical importance of IKS and examines its explicit inclusion within the framework of NEP 2020. It also reviews the implementation strategies and guidelines introduced by the University Grants Commission to promote the integration of the Indian knowledge system in school and higher education curricula. The study highlights the potential of the Indian knowledge system to enhance critical thinking, ethical awareness, innovation, and cultural identity among learners. At the same time, it addresses key challenges associated with its implementation, including curriculum development, faculty preparedness, and the need to ensure authenticity and academic rigour in presenting traditional knowledge. The study concludes that the effective integration of Indian Knowledge Systems under NEP 2020 can strengthen India’s education system by linking ancient wisdom with modern knowledge frameworks. Such an approach can contribute to fostering cultural confidence, promoting interdisciplinary learning, and positioning India as a global knowledge leader, often envisioned as Vishwaguru. The study of the Indian knowledge system integration under NEP 2020 can position India as a global knowledge leader (Vishwa guru) by bridging ancient wisdom with contemporary needs.