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Most of the studies on federalism centre around the legislative, financial and administrative relations between the Centre and the States. Very little attention, has been paid to the theory-building. In this paper deals with a conceptual analysis of federalism. Here a review of classical theory, origin theory and functional theory has been made but the conclusion is that each theory of federalism contains elements of validity and usefulness though each of the theories also suffers from inadequacies. All the three theories are separate but, at the same time, interrelated and complementary to each other. Taken together they explain federalism as a political system which creates in a society broadly two levels of Government with assigned powers and functions arising from a variety of social, economic, cultural and political factors. Adapted from the source document.