China has been working on a modernization plan for its military. Particularly, the People’s Liberation Army-Navy (PLAN) has been the focus of modernization due to China’s seaward economic growth and development for protecting its maritime economic interests. China’s Belt and Road Initiative (BRI) is an example of strategic envisioning which has multiple facades besides dividends. Since China has a massive trade volume transiting Indian Ocean Region, PLAN has increased engagement in this region. Its modernization including its naval capabilities, surface and underwater vessels, unmanned maritime vehicles (UMVs), acoustic systems for information, and other technological advancements has made China’s strategic posture in IOR dynamic and is threatening India’s intrinsic naval supremacy in the region with certain implications over regional peace and stability. This is exploratory research conducted to determine the nature of naval competition and the resulting balance of power to identify implications for regional peace and stability.