Indian tradition has long emphasized the significance of value-based and moral education as the cornerstone of individual and societal development. Rooted in ancient philosophical systems such as Vedanta, and enriched by teachings from scriptures like the Vedas, Upanishads, and the Bhagavad Gita, Indian education has historically aimed at the holistic development of human personality. Core values such as truth (Satya), non-violence (Ahimsa), righteousness (Dharma), compassion (Karuna), tolerance, and self-discipline have been central to shaping ethical individuals and harmonious societies. In the contemporary era, rapid globalization, technological advancement, and consumerist culture have contributed to a decline in moral values, especially among youth. Issues such as indiscipline, intolerance, emotional instability, and lack of social responsibility are becoming increasingly prevalent. This study explores the concept, significance, and relevance of value-based and moral education in accordance with Indian tradition. Using a qualitative and analytical approach based on secondary sources, the paper examines contributions of thinkers such as Ved Vyas, Adi Shankaracharya, Swami Vivekananda, and Dr. Sarvepalli Radhakrishnan. The findings reveal that modern education systems often prioritize academic success over ethical development, leading to societal imbalance. The paper concludes that integrating traditional Indian values into modern education is essential for fostering ethical leadership, emotional intelligence, and sustainable development.