Many theories have been put forth by Ayurveda to explain the human body functions. Ksheeradadhi Nyaya, a theory to explain Dhatu formation has been explained based on the process of bio conversion of Ksheera (milk) to Dadhi (curd) and so on till the final product Ghrita Manda (clarified portion of ghee) is formed. This theory suggests that for an entity to get formed, it needs the complete transformation of a precursor. Likewise the precursor Rasa Dhatu transorms into another Dhatu ultimately forms Shukra Dhatu. Hence such theories are efficient to conceptualize Ayurveda’s idea on functioning of human body. But a comprehensive study of Ayurveda and modern human physiology aids to discover the fact that such theories are not only valid in understanding Ayurveda but also helps in conceptualizing processes involved in human body as emphasized in modern science. Human physiology comprises some of basic to complex process involving conversion from one form to another form like gluconeogenesis, gene expression, embryogenesis, erythropoiesis and thrombopoiesis. A comprehensive study of these processes discloses that they operate as per the theory of Ksheeradadhi Nyaya. It gets clinical significance as it is able to describe how a defective progenitor can lead to formation of defective entity which can lead to failure of the process causing disease, an example of which is macrocytic anemia occurring due to defective erythropoiesis.