This article analyzes the India–Australia relationship within the challenged context of the US–China rivalry and of the rise of China. The details of this bilateral relationship need to be focused for analyzing cooperation trends and common national interests of the two countries. This paper will apply various theoretical perspectives of international studies for examining the empirical data from official declarations, policies of the two countries and academic research studies directly related to the India–Australia relationship. The hypothesis of this research is that the Indo-Pacific regional structuralization and great powers’ rivalries would lead to the context in which the regional power competition and new regional institutions establishment would promote the common strategic interests and balancing policies between the US and China of the two countries. Therefore, the bilateral relationship between India and Australia would have opportunities for further development in the future.