The influence of Western dramatic theories has played a crucial role in shaping the evolution of modern Indian theatre. Concepts derived from Aristotelian poetics, dramatic realism, Brechtian epic theatre, and Stanislavski’s system significantly informed new approaches to playwriting, performance, and actor training in India. However, these theoretical frameworks were not adopted in isolation; instead, they interacted continuously with indigenous aesthetic principles rooted in Bharata’s Natyasastra, rasa theory, folk theatre traditions, and ritual performance practices. This interaction occurred within a broader historical context marked by colonial encounters, the nationalist movement, and postcolonial cultural debates. Modern Indian theatre thus emerged as a hybrid cultural form, negotiating between Western structural models and traditional Indian modes of narration, symbolism, and audience engagement. Shifts in thematic concerns—from mythological and ritual narratives to social realities, urban modernity, and questions of identity—reflect this synthesis. The expansion of theatre education and institutional frameworks further facilitated the circulation of Western theories while encouraging reinterpretation rather than imitation. The study emphasizes that Western influence did not replace indigenous traditions but contributed to a dynamic process of adaptation and creative transformation. Modern Indian theatre, therefore, represents a plural and evolving aesthetic space shaped by dialogue, resistance, and reinterpretation across cultural boundaries.