Regional cooperation has gained new significance in the context of the increased competition among the developed countries, rising protectionism and growing crisis in the international economic system. The dilution of the North-South dialogue and increasing emphasis on South-South cooperation also promoted the growth of regional cooperation in the recent times. One of such ventures of collective self-reliance and development is attempted by the states of South Asia which took the form of SAARC (South Asian Association for Regional Cooperation). Regionalism is as such a manifestation of particular regional arrangements in various economic, social, cultural and political groupings to facilitate regional cooperation. These regional associations are becoming effective, creating a new milieu for the political world as well as for economic interaction in a globalized world. Regional integration provides in a well-defined geographic region and techniques of conflict resolution and possibilities of pursuing common foreign policy objectives within a regional context. It also provides a mechanism for integration and unification leading to community building. However, the economic aspect holds the pre-eminent position for interdependence among the member countries in regional arrangement. South Asia is a complex region with striking similarities in social, cultural and ethnic aspects. There exist sharp differences in the political systems, economics, political, and strategic perception of the component states. While diversities divide these states, the similarities bring out their common heritage, common problems and common goals. This very complexity of this region witnessed a late and slow growth of the regional cooperation. SAARC, thus, has an unenviable task of achieving its objectives in a region that is never free from internal conflicts and tensions. Regionalism has become substantial phenomenon in international relations in Post-World War II period. The era of 1950s and 1960s saw the rise of many regional groupings in different areas of the world. After the Cold War regionalism obtained a transformed motivation with the thrust of globalization. It enhanced the development of interdependence and provided more incentive to the process of globalization. Subsequently, late 1980s the process of regionalization began to reemerge in different areas of the world and this process coincided with the rise of globalization. xi Regionalization and globalizations both led to integration but these not essentially supplement nor contradict each other and both operate at different levels. This dissertation is an attempt to highlight the politics of regionalism in South Asia and to focus on the role of SAARC (South Asian Association for Regional Cooperation) in the region. India and Pakistan‟s hostile relationship remained main obstacle in the progress of SAARC. Despite having several bilateral problems SAARC provides regional identity and discourse to small countries of South Asia. Furthermore, this study will explain all factors which are contributing in regionalism in South Asia. Against this background, the present study tries to probe the salience of regionalism in South Asia. It is an attempt to understand problems and prospects of SAARC. The various factors that influence regional cooperation in South Asia and the smooth functioning of SAARC and a case study of India and Pakistan‟s attitude towards the regional arrangement is being discussed. The present study is also intended to be an inquiry into the complexity of international and intra-regional forces that create challenges as well as opportunities for regional cooperation in South Asia. Therefore, this study focuses on the political factors that influence SAARC rather than, highlighting areas of cooperation. Underlying assumption is SAARC primarily emerged due to political compulsions of South Asia. Regional cooperation could not take to a deeper level because there are still doubts about the political will and commitment towards regional cooperation on the part of the member states.