While Pāṇini's work is purely grammatical and lexicographic, cultural and geographical inferences can be drawn from the vocabulary he uses in examples, and from his references to fellow grammarians, which show he was a northwestern person. New deities referred to in his work include Vasudeva (4.3.98). The concept of dharma is attested in his example sentence dharmam carati "he observes the law" (cf. Taittiriya Upanishad 1.11).

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Panini was a Sanskrit grammarian who gave a comprehensive and scientific theory of phonetics, phonology, and morphology. Sanskrit was the classical literary language of the Indian Hindus and Panini is considered the founder of the language and literature. It is interesting to note that the word "Sanskrit" means "complete" or "perfect" and it was thought of as the divine language, or language of the gods.

In the fifteenth century Rāmachandra, in his Prakriyā-kaumudī, or "Moonlight of Method," endeavoured to make Pāṇini's grammar easier by a more practical arrangement of its matter. Bhaṭṭoji's Siddhānta-kaumudī (seventeenth century) has a similar aim; an abridgment of this work, the Laghu-kaumudī, by Varadarāja is commonly used as an introduction to the native system of grammar. Among non-Pāṇinean grammarians may be mentioned Chandra (about 600 A.D.), the pseudo-Çākaṭāyana (later than the Kāçikā), and, the most important, Hemachandra (12th century), author of a Prākrit grammar.

Panini, the ancient grammarian (probably belonged to 5th century or sixth century BC) mentions a character called Vasudeva son of Vasudeva, and also mentions Kaurava and Arjuna which testifies to Vasudeva Krishna, Arjuna and Kauravas being contemporaries. Megasthenes (350-290 BC), a Greek ethnographer and an ambassador of Seleucus I to the court of Chandragupta Maurya mentioned about Herakles in his famous work Indica. Many scholars have suggested that the deity identified as Herakles was Krishna

The accepted cultivated speech of the contemporary language that Pāṇini describes in his Aṣṭādhyāyī must have coexisted with more vernacular varieties of speech in which there were features belonging to the Middle Indo-Aryan division of the language group. Several facts support this view.

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The Mahābhāshya was commented on in the seventh century by Bhartṛihari in his Vākyapadīya which is concerned with the philosophy of grammar, and by Kaiyaṭa (probably thirteenth century). About 650 A.D. was composed the first complete commentary on Pāṇini, the Kāçikā Vṛitti or "Benares Commentary," by Jayāditya and Vāmana.

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Panini’s grammar is the earliest scientific grammar in the world, the earliest extant grammar of any language, and one of the greatest ever written. It was the discovery of Sanskrit by the West, at the end of the 18th century, and the study of Indian methods of analyzing language that revolutionized our study of language and grammar, and gave rise to our science of comparative philology … The study of language in India was much more objective and scientific than in Greece or Rome. The interest was in empirical investigation of language, rather than philosophical and syntactical. Indian study of language was as objective as the dissection of a body by an anatomist.

Pāṇini's grammar defines Classical Sanskrit, so Pāṇini by definition lived at the end of the Vedic period. He notes a few special rules, marked chandasi ("in the hymns") to account for forms in the Vedic scriptures that had fallen out of use in the spoken language of his time. These indicate that Vedic Sanskrit was already archaic, but still a comprehensible dialect.

It is not certain whether Pāṇini used writing for the composition of his work, though it is generally agreed that he knew of a form of writing, based on references to words such as "script" and "scribe" in his Ashtadhyayi. These must have referred to Aramaic or early Kharosthi writing. It is believed by some that a work of such complexity would have been difficult to compile without written notes, though others have argued that he might have composed it with the help of a group of students whose memories served him as 'notepads' (as is typical in Vedic learning). Writing first reappears in India in the form of the Brāhmī script from the 3rd century BC in the Ashokan inscriptions.

Ashtadhyayi Sanskrit treatise on grammar was written in the 6th to 5th century BCE by the Indian grammarian Panini. This work set the linguistic standards for Classical Sanskrit. It sums up in 4,000 sutras the science of phonetics and grammar that had evolved in the Vedic religion. Panini divided his work into eight chapters, each of which is further divided into quarter chapters, beyond defining the morphology and syntax of Sanskrit language.

Sanskrit is constructed like geometry and follows a rigorous logic. It is theoretically possible to explain the meaning of the words according to the combined sense of the relative letters, syllables and roots. Sanskrit has no meanings by connotations and consequently does not age. Panini's language is in no way different from that of Hindu scholars conferring in Sanskrit today.