The evolution of governance in India reflects a profound transition from the ancient concept of Raj Dharma to the contemporary doctrine of the Rule of Law. This seminar paper explores the legal and philosophical ideas of Kautilya, as enshrined in his seminal work Arthashastra, and their relevance in the framework of modern democratic governance. Kautilya’s political theory, which combines elements of dharma (moral duty), danda (coercive power), and nyaya (justice), presents a comprehensive model of statecraft where the ruler is both the protector and enforcer of law. His notion of Rajdharma emphasised ethical leadership, welfare of the people, and a well-regulated administrative and judicial system. In contrast, the modern rule of law is grounded in constitutional principles such as equality before the law, supremacy of law, and accountability of public authorities. While at first glance, Kautilya’s approach may appear authoritarian, a closer analysis reveals significant parallels with the rule of law in terms of promoting justice, ensuring state accountability, and maintaining social order. This paper examines the convergence and divergence between Kautilya’s philosophy and modern legal systems, highlighting areas such as welfare orientation, corruption control, and national security. It also addresses the critical question of whether Kautilya’s realpolitik strategies, including surveillance and centralised control, can be ethically reconciled with democratic ideals. By contextualising Kautilya’s thought within the modern legal discourse, the paper argues for a nuanced understanding of ancient Indian jurisprudence that can contribute to contemporary governance models. Ultimately, it reflects on how indigenous legal traditions like Rajdharma can enrich the global conversation on justice, governance, and the rule of law in the 21st century.