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Ethics by definition refers to principles and value systems concerning the way we lead our personal life in relation to others in the society at large. This can be easily seen to depend on the cultural milieu and may change slowly over periods of time. Nevertheless, by ethical principles, one usually means such ideals and practices that nurture a sense of happy balance among the citizens in leading their day to day life. This applies to all walks of life including the system of education. In this article a brief picture of the gurukula system indigenous to our country is presented highlighting the eternal ethical values that have been upheld over millennia by the Indian civilization.