The Lonar impact crater in the Deccan Traps of the Indian peninsula provides unique opportunities to study physical and chemical processes of impact cratering on basaltic targets, because terrestrial impact craters on basalts are extremely rare. Such studies are needed for determining provenance and other parameters of the excavated rocks and the cratering phenomenon that may have implications for similar crater formations in Lunar, Martian and other basaltic targets in the solar system. Considering some of these objectives, we analyzed trace elements and Nd, Sr, Pb-isotopes of impact breccia rocks and target basalts collected from the Lonar crater. Chondrite-normalized Rare Earth Element (REE) patterns in the target basalts and breccia rocks show similar light REE-enriched patterns, although in detail, the impact breccia are more fractionated in La/Sm compared to the target basalts. The target basalts also show much lower concentrations of Rb, Ba, Th, U and Pb compared to the breccia and are characterized by Rb, Ba and Pb depletions with respect to the primitive mantle-normalized Th, U, Nb, Ta and the REE contents. The breccia rocks are significantly enriched in Rb, Ba and Pb, and to a lesser extent in Th and U, compared to the target rocks. The Nd, Sr and Pb-isotopic compositions of the Lonar target basalts can be correlated with those of the Poladpur suite, one of the mid-section volcano-stratigraphic units of the Deccan traps. In contrast to the host basalts, the impact breccia rocks show more radiogenic Sr, less radiogenic Nd and higher Rb/Sr and lower Sm/Nd ratios, indicating an additional component, other than the target basalt, that must have been derived from beneath the basaltic target rocks at the impact site. The Deccan traps in western India are underlain by Archean to mid-Proterozoic cratonic rocks. The overall geochemical signatures of the impact breccia rocks, specifically, the trace element concentrations, negative ε Nd values, radiogenic Sr isotopic composition as well as the high 207Pb/ 204Pb at low 206Pb/ 204Pb indicate that a major component of the Lonar impact breccia was derived from melting of Archean basement rocks. We argue that the Archean component in the breccia cannot be from the incorporation of paleosols that are weathering products of the target basalts, or from the inter-trappean sediments that are most commonly cherts and limestones of Mesozoic age. Similarly, the possible role of eolian sediments in causing the Archean Pb-isotopic signature, identical to those of the Deccan basement, in the breccia rocks can be excluded. The basement beneath the Lonar region is believed to be similar to the Dharwar craton of peninsular India. Based on their similar Pb-isotopic compositions with the breccia rocks, we suggest the Archean Chitradurga Group of rocks of this craton to be present in the basement beneath the Deccan lavas of the Lonar region. The thickness of the basaltic target rocks at the crater-site (∼ 400 m) and the inferred crater depth (350 m–610 m), based on depth to diameter ratios in simple planetary craters (0.2–0.33), are consistent with our conclusion regarding melting and incorporation of these ancient basement rocks in the impact breccia of the Lonar crater. Using Pi-group scaling relations, the observed crater diameter, and density of the basaltic target rocks, we have estimated with reasonable approximation the diameter of the Lonar impactor to be either 70 m, 86 m or 120 m, assuming the bolide to be an iron meteorite, stony-iron meteorite, or an ordinary chondrite, respectively.