The great epic like Mahabharata born in this dreamland of beauty and fragrance bears within its bosom the eloquences of poetry and rhythm of song. The approach of Indian philosophy to Truth and Reality is essentially moral and practical. Ethics is an essential appendage of Metaphysics because one can attain truth only by following all ethical rules and precepts prescribed for this purpose. In Mahabharata the ethical approach is not a mere intellectual approach to moral problems. It is practical through and through as the primary object of ethical teachings in India is to serve, as a true guide of man in his uphill journey of life ending in the realization of supreme good. According to Mahabharata morality should constitute the keynote of a man's empirical life as nobody can reach transcendental state of Moksa without making his empirical life spotlessly pure. The transcendental Truth can be realized only by the actual realization of ethical ideas in practical life. Supra - moral is linked with the moral and the transcendental Peace and Delight with the moral purity of the empirical life. According to the ethics of Mahabharata the World is to be looked upon as positive and essential as it is based on Truth. It is our duty »o respect the world, to respect the society to which we belong and also to respect all the relations, which exist between man and man. The harmony between the metaphysical life of spiritual freedom and the moral life of purity and peace has been depicted in a rational and convincing manner in the Mahabharata. A great philosophy like Mahabharata tries to rise above the limits of time and place, in so far as it discusses certain questions and problems, which are eternal and universal, valid for all time and place. So, it has not only the historical value but is related to very being of mankind, and hence is of interest to everybody and every age. In this paper a humble attempt has been made to explicate the ethical issues of Dharma and Kama, before attempting the character analysis of Yayati.<br><br> dharme carthe ca kame camokse cabharatsabha I <br>yad ihasti tad anyatra yam nehasti na tat kavcit II <br>( Mbh. I. 56.33 )<br>" In the realms; of religion and ethics ( Dharma ) of material progress and prosperity (Artha ), of the enjoyment of the pleasures of personal and social life ( Kama ), and of spiritual -emancipation ( Moksa ), whatever is embodied in this epic way be found elsewhere, but what is not found in this epic, it will be impossible to find anywhere else"1<br><br>1.Rg. 1.187. 1&amp;X92.2; Atharva, XX1.7; Vajasanaj.Sanihitha XXXV