In this paper, I propose to discuss the theory of error or Khyativāda with special reference to Nyāya philosophy. The error is an epistemological concept. As such it is contrasted with the truth. Philosophers, while dealing with the concept of error, have analyzed it from logical, metaphysical and psychological perspective. The problem of error in Indian philosophy is discussed in the different theories known as the Khyativāda. According to Nyāya School error is known as anyathākhyativāda. Here 'anyathā' literally means 'otherwise' (...) or 'else-wise'. When shell is perceived as silver, the erroneous cognition consists in the fact that the shell is perceived otherwise i.e. as other than what it really is. Error is an instance of erroneous judgement resulting from mischaracterization. Naiyāyikas bring in jñānalaksana pratyaksa to account for perceptual error. And the later Naiyāyikas are trying to explain the perceptual character of illusory experience, undoubtedly, an illusion, there is the attribution of false character to a perceived fact. (shrink)