The present paper explores Michael Ondaatje's novel "Anil's Ghost" through the lens of trauma theory, postcolonialism, and the concept of heterotopic spaces. As space studies examine migration, displacement, and exile, which are inherently linked to traumatic experiences, the investigation illuminates the intricate connection between heterotopic spaces and encounters with trauma, providing a valuable understanding of their interdependence. Michael Ondaatje, the acclaimed author of "Anil's Ghost", has drawn upon his own traumatic experiences of displacement and emigration in the novel. Therefore, the purpose of the research paper is to analyze how changes in space shape traumatic experiences. Spaces are integral to one's sense of place and identity, and traumatic events might disrupt this connection, leading to a profound loss of identity or a struggle to reconcile personal identity with changed or disrupted spaces. Studying the connections between trauma and space reveals a better understanding of how environments and spatial contexts impact the occurrence, perception, and recovery from traumatic events. The research contextualizes Foucault's concept of heterotopia within postcolonial distinctions in time and space, emphasizing its relevance in understanding the novel's narrative. It highlights the complexity of trauma and the challenge of reconciling historical narratives within these spaces. Employing a multidimensional methodology integrating cultural studies, trauma theory, and literary analysis, results uncover the complexities of trauma within postcolonial spaces, notably Sri Lanka, showcasing the profound impact of historical conflicts and Western interventions. Ultimately, the research concludes by recognizing the intertwined nature of trauma, history, and identity within physical and metaphorical spaces. It acknowledges the evolution of characters’ identities like Anil Tissera, who navigate their personal traumas and their nation's scars, seeking a path forward while acknowledging the weight of history. In summary, the manuscript contributes to a deeper understanding of how "Anil's Ghost" navigates the complexities of trauma, identity, and history, shedding light on the relationships between individuals, society, and historical narratives in postcolonial contexts.