Contemporary Indian English literature increasingly reflects psychological complexities associated with identity, alienation, trauma, and emotional conflict. Literary narratives now integrate psychological realism to explore human behavior in modern socio-cultural contexts. This study examines major psychological themes portrayed in selected Indian English novels and short stories. The research highlights how writers employ narrative techniques to represent anxiety, depression, self-identity crises, and social isolation. The findings indicate that modern Indian literature serves as a psychological mirror of societal transformation, contributing to interdisciplinary literary and psychological research.