An atuhentic study of the origin and development of various Buddhist sects in ancient India on the basis of the treatises of Vasumitra, Bhavya, and Vinitadeva as well as Kathavatthu, Pali canonical text with Buddhaghosa’s commentary there-upon, Sammithiyanikaya-sastra and Mulasar-vastivada Vinaya. It shows how Mahayanism developed as a natural consequence of the views of Mahasanghikas and as a development of the neblous conception of Bodhisattva and Buddahakayas in the Divyavadana and Avadanasataka.