Synopsis Today, in the new world order, perhaps a small organisation like SAARC should hold no great significance. Its a tiny body, with only seven members, but this does not lessen its importance. Infact, its strategic geographical location provides it with a special status and it becomes an entity in itself.In letter and spirit, SAARC is a cultural, economic and commercial association, a political in nature. Still, its political importance and meaningfulness is quite obvious and is recognised by the whole world, including big powers. This study evaluates SAARC, as a living and developing organisation and efforts have been made to cover all the aspects in an objective manner. This adds to its worth as a comprehensive and exhaustive work on the subject.