Liberalism is increasingly applied in explaining post-Cold War India-Pakistan relations. It is argued that both the nations have cultivated liberal values, resulting in complex interdependence and peace in their mutual relationship. The existence of different regimes as the Indus Waters Treaty, regional trade regime of SAPTA and SAFTA, CBMs and gas regime of TAPI and IPI, are referred to as liberal trends in their IR. However, this article contends such a view as naïve and idealistic. India and Pakistan are trapped in an unending security dilemma manifested by 3 major and one minor war, border disputes, alleged mutual interventions and the arms race. It argues that India-Pakistan relationship doesn’t lend itself to the democratic peace thesis, trade-brings-peace theory, multilateralism and international regimes. First, a brief overview of liberalism is followed by its application to India-Pakistan relations. Subsequently, a critique of realism is presented and placed in the context of India-Pakistan relations.