Considered from the perspective of the Indian experience of relations with China over the past fifty years, it is necessary in the new millennium to break out of a historical pattern in which both the Chinese and Indians have unilaterally projected either their best hopes or their worst fears upon the complex and mixed realities of both countries. Changing mindsets inured in sentiments of humiliation on one side or hurt feelings on the other are unhelpful in reaching objective conclusions that promote Sino-Indian relations in the best national interests of the two countries. India and China need to boldly face certain inherited challenges, while accelerating the realisation of the inherent potential in their relationship.