A democratic system gives people the ability to participate in the decision making (directly or indirectly) and that too without any pressure or influence. There have been different perspectives for the evolution of Democracy. One of them which is well known was that democracy came into existence after the cold war between USSR and America. The widest differentiation that intellectuals make between democracies is based on the nature of the representative government. The two main types of democracies are Direct Democracy and Indirect Democracy. Direct democracy means all legislative power lies in the hands of people. This kind of Government although sounds like an ideal form of government but is very difficult to implement especially in a country with a huge population. Indirect democracy has a bit different arrangement, in this democracy through the electoral process, one person or a group of people are elected and assigned the task of lawmaking decisions on behalf of the people who have chosen that person or group of people. Therefore, we can see that there are similarities between the two different system of democracy but when we examine both of them closely, it can be easily marked that they are very different from each other. Direct democracy gives full power to its people whereas in an indirect democracy people have the right to choose their representative but can’t interfere in the lawmaking the process as the representative’s work on law-making on behalf of people. Thus, both the democracies have their own positive and negative effects and there are certain conditions under which they can be implemented.