Kautilya's Arthashastra contains some universal truths which transcend the boundaries of time and space. Arthashastra is also very relevant for solving the problems of present day society, especially in the field of education and management. The ancient ideals of education must be adopted to modern conditions. In the Indian view of life, universal peace is attained by toleration. The purpose of learning is not mere gaining of knowledge. Knowledge, the object of knowledge, and the application of knowledge-all three are equally important. Kautilya's Arthashastra is a well known treatise, generally known as a work of economics written by Kautilya in 4th century B.C. It is a misconceived meaning of the title, as we go through the text we come to realize that it is a complete treatise, related to various measures of education, training, management and administration in running the government successfully. This thesis is an attempt to use Hermeneutic qualitative research methodology, to study, understand and interpret ancient classical literature, so that best practices from the literature are identified, interpreted and integrated into education and management practices.