Carl Gustav Jung's engagement with Indian thought, particularly Hinduism and Advaita Vedanta, was a critical yet conflicted aspect of his psychological development. This paper explores the dialogue between core Jungian concepts, such as the Self and individuation, and Indian spiritual traditions, focusing on the fundamental tension between his Western, ego-centered psychology and the Indian goal of realizing objectless consciousness (ātman or brahman). While Jung directly incorporated Indian symbolism (e.g., mandalas), his Eurocentric worldview led to ambivalence toward contemporary Indian spirituality. The paper presents contemporary models that successfully integrate Jungian individuation (psychological wholeness) with Vedantic mokṣa (spiritual liberation), positioning individuation as a necessary psychological precursor to spiritual transcendence.