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This study analyzes the China‟s foreign policy towards South Asia with the phenomena of strategic stability. South Asia has emerged as progressively vibrant interest to China‟s foreign policy. Chinese administration has showed consent to continue its harmonized policies towards regional states like India and Pakistan. Following the realistic approach, it is quite possible that China may not prove helpful in resolving the chronic regional territorial disputes however; it will be cooperative in bringing peace and stability in this region along with economic boom. The outcome of discussion reflects that the imperatives of regional security added new dimensions such as China‟s peaceful rise under Xi Jinping and China‟s role of strategic balance between India and Pakistan. Due to diverse Chinese interests in this region, it is expected that Beijing will pay more attention towards South Asian affairs in future and will play a role of more responsible stakeholder.