India’s evolving militarization of space, marked by its growing military space capabilities and strategic investments, presents security challenges for Pakistan. As India’s space power expands, including its development of anti-satellite weapons and defense-oriented space programs, the regional security dynamics shift, raising concerns over an arms race and strategic instability in South Asia. This paper employs the Security Dilemma Theory to analyze the impact of India’s space advancements on South Asian regional stability. Using the qualitative research methodology, the research identifies India’s development of anti-satellite weapons, defense-focused space programs, and global positioning as a major space power escalates the risk of an arms race, heightens strategic instability, and intensifies Pakistan’s vulnerabilities. It also underlines the lack of crisis communication channels and robust confidence-building measures (CBMs) between the two countries, further amplifying the threat of inadvertent escalations. The findings suggest that Pakistan must adopt a proactive strategy to address these regional challenges. Collaborative efforts among regional stakeholders, participation in multilateral space forums, and adherence to international space law principles are essential for regional space security and stability in South Asia. This study underscores the importance of balancing national security interests with regional and global stability in the increasingly contested space domain.