Air, Land and Sea power is a prerequisite for becoming a regional power. Maritime dominance allows a country to extend its muscles beyond the geographical borders. India is currently in pursuit of becoming a regional power and is trying to achieve maritime dominance. Unfortunately, its actions have not only threatened regional peace and stability, but have also brought international actors on the South Asian security canvas. Pakistan, an important littoral state, is directly affected by the Indian actions. To maintain regional balance and for its own national security, Pakistan has to not only explore options, but also enhance its maritime capabilities. This paper attempts to make an in-depth analysis of the complex situation in the Indian Ocean, and gives suggestions about the challenges and opportunities for Pakistan.