This work aims at making an analytical study of Indo-US relations from 2000-2008. With the end of cold war and subsequent economic reforms by India, the nature of Indo-US relations has changed from estrangement to engagement. The two countries entered into nuclear cooperation, an issue that had held them apart. By signing the nuclear deal India's nuclear power status got indirectly recognised and became the only country outside NPT signatories that can trade in nuclear material. The closeness started in economic domain when India opened its economy to the outside world and penetrated other fields. Today India and the US view each other as natural allies. The work seeks to explore this transformation in India-US relationship.