Now a days the modern Indian society is talking so much about the rights and the position of third gender people. Whereas, the third gender people already occupied an important place in the ancient Indian society. India is a land of different religions and culture and Hinduism is largely practiced in India. According to the Rig Veda in Hindu mythology three types of genders has been considered: Male that is Purush, Female that is Prakriti and third gender that is Tritiya Prakriti. Also their contribution towards the betterment of society is quite evident from the stories of two main epics of India that is Ramayana and Mahabharatha. It is in recent times that the modern Indian society considered them as third gender otherwise there was no such identity given to them legally. Still all is not well and the third gender people are struggling to be a part of the civil society. A drastic change has taken place as far as their position in modern society is concerned as compared to the ancient times, social exclusion can be seen and felt by looking at their living standards and daily activities. Through this article the author wants to analyze the whole process of transition from, third gender being an important part of ancient Indian society to again becoming an issue of disrespect and fighting for their peaceful and dignified existence in the same society to gain their identity back.