The concept of minilateralism which involves small group of countries is emerging as a viable option to overcome the difficulties of traditional multilateralism, especially in South Asia where rivalrous great powers have thwarted regionalism in SAARC. India is one of the countries which have relied greatly on bilateralism and minilateralism to tackle its security problems in recent times. It has engaged in various minilateral summits and meetings alongside Bangladesh, Bhutan and Nepal. However, India’s foreign policy is driven mainly towards countering China’s growing influence and Pakistan’s hegemony in the region. Pakistan on the other hand, has pursued minilateralism as its foreign policy option to counter India’s dominance and to overcome the impasse in SAARC. Consequently, there has been a security dilemma which has triggered the arms race in the region. Although minilateralism provides a more effective forum for negotiations and cooperation than multilateralism, it raises new problems of coordination and may lead to further fragmentation of South Asia.