The author gives a critical and comprehensive study of the fundamental problem of universals in Indian philosophy. The centre of the study is the controversy between the Nyaya-Vaisesika and the Mimamsa realists on the one hand and the Buddhist nominalists on the other. The author discusses not only the epistemological and metaphysical approach to the problem of universals but also the semantic approach made by the various systems of Indian philosophy. In this context the view of the grammarions with special reference to Bhartrhari has been discussed in some detail. A brief but critical analysis of some of the main trends of thought on universals in western philosophy beginning from Pluto to the contemporary philosophers has also been given. Besides his scholarly and eminently readable treatment of fundamental problem of universals, the author has attempted to give his own solution of the problem. It is based on the recurrent identities and similarities which are the principles of grouping and which form the foundation of our thought and speech.