Sufism which originated after the death of the Prophet in 7^th century continued to grow with individual mystics and their followers without any institutional framework. As its popularity waxed and its prestige in the eyes of the legalists waned, a code of conduct was developed for its adherents. From 10^th century onwards various orders were developed in the Middle East. In India, the process of consolidation was fast. However, its relationship with the Hindu society was paradoxical. The paper is an attempt to briefly examine its progress, expansion and interaction with the Indian mysticism and its subsequent indigenization.