This paper explores the multifaceted concept of sovereignty, with a specific focus on indigenous sovereignty and its implications in the modern context. It aims to understand how traditional and contemporary definitions of sovereignty apply to indigenous peoples' rights to self-determination and self-government. This study employs a qualitative methodology, drawing upon existing legal documents to explore the historical, legal, and theoretical dimensions of indigenous sovereignty. It critically examines foundational philosophical perspectives from thinkers like Hobbes and Rousseau, contrasted with contemporary understandings shaped by globalization, international law, and human rights discourse. Through analysis of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and the International Labor Organization’s Convention No. 169, the study assesses their implications for indigenous sovereignty. The findings of the study highlight that indigenous sovereignty involves the authority to govern lands, resources, and cultural practices in alignment with traditional norms. It contextualizes the persistent challenges stemming from historical colonialism, which continue to manifest as issues of dis-possession and marginalization. While legal instruments like UNDRIP advocate for acknowledgment of indigenous rights, their actual application remains inconsistent. Additionally, the study underscores the pivotal economic and cultural aspects of indigenous sovereignty, stressing the importance of self-governed economic progression and preservation of indigenous cultural heritage. The study offers policymakers with roadmap for effectively comprehending and implementing indigenous sovereignty. It also stresses the critical significance of securing free, prior, and informed consent (FPIC) in decisions impacting the management of resources within indigenous territories, particularly concerning land, water sources, and forests. Additionally, it advocates for collaborative approaches, recognizing that indigenous sovereignty is essential for decolonization as well as empowerment of indigenous communities, while simultaneously addressing historical injustices and prioritizing the preservation of indigenous cultures, languages, and identities to foster social justice and parity.