India's humanitarian diplomacy in South Asia has been a crucial aspect of its foreign policy in the region. With its growing economic power, size along with strategic location, India is playing a significant role in providing aid and support to its neighbouring countries in times of crises, natural disasters, and conflicts. India's humanitarian diplomacy in South Asia is based on the principle of ‘neighbourhood first’ which highlights the country's commitment to building strong ties with its neighbouring countries. India has provided aid and support to countries such as Nepal, Bhutan, Bangladesh, Sri Lanka, and the Maldives, among others, in various forms such as medical assistance, food aid, infrastructure development, and education. This paper explores and analysis India's humanitarian diplomacy in South Asia, focusing on its determinants, prospects, and challenges. The study examines how India's humanitarian diplomacy has evolved and compares its efforts with China. The research also explores the prospects for India's humanitarian diplomacy in South Asia, the challenges it faces, and how it can overcome them. It investigates the contribution of India's humanitarian diplomacy to regional stability and security and how it aligns with India's broader foreign policy Interests.