This paper attempts to study the psychological degeneration of characters and the presence of mythical elements in the play Yayati. Karnad traverses through unfathomable depths of old Indian mythology to make the social and cultural problems that reflects the traditional Indian society. He portrays a modern context of characters by the amalgamation of symbols. His plays are usually found very close to common people with a very realistic approach towards the issues of humans. He used not only myths to frame the plot but also to pinpoint the human psyche and cultural practices in the society. He took mythical elements from the Mahabharatha with an intention to examine the ludicrousness of life with all its fundamental passions and crisis. The play focuses on man’s eternal struggle to achieve perfection, dreams and desires.