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Nowadays, Diaspora is one of the most debated terms due to the diversified aspects changing all over the world. The personal relationships and identities with one’s homeland have changed in the due course of time. Diaspora Space demonstrates formation of an individual identity in reference to inequality, physical, mental, and social attitudes affecting identity crisis in foreign land. Diaspora study also scrutinizes the scatterings of inhabitants along with cultures disparities across varying geographical places. The discipline emerges a cutting-edge area of research due to required necessities for studies on globalization, nationalism as well. The lost identity and stability of immigrants has becoming global issues firmly rooted in foreign lands. Diaspora study focuses on the immigrant’s niches in the host country. In relevance to diaspora study, identity issues demonstrates the problems largely faced by Indians in foreign countries. Immigrants migrate to foreign land due to diversified reasons such as better job and business opportunities, better life conditions, marriages etc. However, the nostalgia remains in their mind for own homeland. The cultural affiliation plays an important role in diaspora as community opposition to language change and in preservation of traditional religious practices. The character of Biju in Kiran Desai’s The Inheritance of Loss is representative to the Indian diaspora. Biju represents the Indian who leaves homeland in anticipation of wealth and happy life in America. However, Kiran Desai in the The Inheritance of Loss demonstrates the developed country, America as hallucination of another side of the so called term American Dream. Theme of undocumented immigrant that causes identity crisis of Biju in New York, demonstrates American inheritance of cultural loss. In contrast, India stands for great cultural heritage.