Indian Knowledge Tradition believes that education is not just the beginning of the spiritual life of mankind, but it is also the training of human soul. It aims at all round development of an individual. Education plays an important role in shaping a country’s socio-economic growth. India is one of the fastest growing economies with a huge human resource. With such vast human capital, the scope of higher education is very much wider in comparison to the other countries. We, in India have the tradition of believing and recognizing “Maa Saraswati” as the goddess of knowledge. We have Vedas, Upanishads, puranas in our core value system. The Bhagwad Gita enlightens and guides mankind in the gravest of life’s problems and awakens not just human mind but also enlightens human soul. The role of women scholars in the Vedic era in developing and enriching Indian tradition cannot be undermined. Takshashila is regarded as the oldest university in the world. While Nalanda, Vikramshila in Bihar are the examples of many distinguished centers of higher education centers in India, which were way ahead of times. The main aim of such higher education institution was to impart Vedic knowledge which leads to spiritual growth. The glory can be traced from the writings of many of the foreign travelers who came to visit Bharat during those times in order to not just see the prevailing higher education system but also to attain knowledge. Our modern education system is largely based on colonial legacy and English education pattern. The foreign invasion and the British rule destroyed traditional Indian educational system in a planned way. According to UNESCO, there are around 235 million students enrolled in different universities around the world. If India is willing to become a super power someday it will only be through knowledge-based society. In this paper we will be discussing the issues and challenges before the higher education system in Bihar. There are 17 state Universities in Bihar, each university has broadly two types of colleges- namely Constituent college and Affiliated college. Constituent Colleges are more or less like Government College and Affiliated colleges are like Private college. This research is primarily focused on the constituent colleges. Present paper seeks to highlight different issues and hindrances before the higher education system in Bihar e.g. Low Gross Enrolment Ratio (GER), inadequate Pupil-Teacher ratio, delayed session, poor attendance of students in college, absence of proper laboratory facility, NAAC accreditation, implementation of National Education policy 2020 etc. This is an empirical research based on observational methodology. Higher education has experienced expansion both in terms of institutions and enrolment over the period of time, but it has not been sufficient. Present higher education system has total disconnect from our great ancient tradition. Innovative and transformative strategies need to be implemented on priority basis at the higher education level.