The rise of China has challenged the US global dominance, which it has held since the fall of the erstwhile USSR three decades ago. The United States is engaged in strategic efforts to contain the rise of China and retain its supremacy in the world. To this end, it has strengthened relations with regional countries, particularly India, which has emerged as a top US ally in the region. The US and India have considerably cemented their strategic partnership in recent years based on shared concerns about a rising China. This paper argues that the US wants India as a security provider to counterbalance China, while India seeks the US and western support to enhance its military capabilities to counterweigh China and become a regional hegemon, creating an imbalance in the region. Against this backdrop, this research paper is an attempt to recount important developments in India-US defence relations, focusing on bilateral deals, nuclear collaboration, and maritime cooperation vis-à-vis China's growing power and influence in the region. Besides, the study examines the implications of Indo-US defence cooperation on regional stability, particularly for Pakistan, which is already facing security challenges arising from Indian strategic intentions. This research has been conducted using a qualitative method of analysis and using both primary and secondary sources of data collection.