Indian ancient traditional knowledge system is unique and has many roots of learning relevant to any time. It has evolved, and different chapters of ancient Indian Knowledge are classified into various sections. It has its history. Recently, interest in diagnosing such Knowledge to find out the most relevant forever is increasing and is necessary for sustainability. That would help us to improve our efforts to enhance human welfare. Therefore, there is a need to analyze the nature and history of those Knowledge, philosophy and values related to human welfare. Such an attempt to analyze the history of the ancient Indian knowledge system is made in this paper. The primary purpose of this paper is to analyze the evolution of the ancient Indian knowledge system and related philosophy relevant to human welfare. The paper reviews different sections of the ancient Indian knowledge system, the associated philosophy, and how they evolved. Indian ancient Knowledge and education system was strongly built by philosophy for human welfare. In fact, it was more concerned with seven Janmas (Births) rather than the current living in the world. The Indian knowledge system had two critical concepts, Jnana and Ajnana which may be referred to as concurrent with Vedanta and Vyavahara (Business). All these issues are discussed in the paper.