The National Education Policy 2020 (NEP 2020) marks a historic transformation in India’s educational landscape, aiming to align the nation’s academic framework with 21st-century needs. This paper explores the rationale behind the introduction of NEP 2020 and examines its key provisions, especially at the school and higher education levels. With the world rapidly evolving due to technological innovation, climate change, and changing job demands, India’s outdated education model was no longer sufficient to equip students with the critical skills and knowledge needed for the future. NEP 2020 addresses these challenges by introducing a learner-centric, flexible, and multidisciplinary approach to education. Key features include the restructured 5+3+3+4 school system, emphasis on foundational literacy and numeracy, promotion of regional languages, inclusion of experiential and discussion-based learning, and integration of research from the undergraduate level. The policy also advocates for holistic development through multidisciplinary learning, flexible academic pathways, and equitable access to education. This paper concludes that if implemented effectively, NEP 2020 holds the potential to redefine India’s educational ecosystem, preparing students to thrive in a competitive, interconnected, and knowledge-driven global environment.