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Caste system is an essential feature of both Hindu and Muslim societies in the sub-continent. This paper compares the dynamics of traditional caste system practiced across Hindus and Muslims of India and Pakistan respectively. Birth-ascribed statuses, definite occupations, hierarchical positioning of caste groups and endogamous form of marriage are found to be the common characteristics of caste system practiced across Indian Hindus and Pakistani Muslims. In the Hindu caste system, membership in a Jati determines the rules and regulations regarding food and touch ability for the members through socio-religious rituals of purity and impurity. In contrast the notions and rituals of pure and impure are virtually absent in Muslim Pakistan. Caste system in both India and Pakistan is decaying with time because of the increasingly urbanization. However, geographical isolation and long established social structures in rural India and Pakistan are the favorable conditions that uphold the caste practices.