Since every root sound has a distinct meaning, its signature is found in all the words derived from it. It is theoretically possible to explain the meaning of the words according to the algebraic combination of letters, syllables and roots. This transparency of rootsounds and semantics follows a natural process and gives Sanskrit the ability to discover its own history. Consequently, Sanskrit is an ever-creative language in which each word is the parent and creator of ideas. A letter is called 'akshara', which literally means imperishable or eternal. Akshara is the eternal sound, and it does not perish but reveals the whole secret of speech. Another term for letter is 'varna', which means hue or colour. Thus, every letter is heard as a sound and has a visual hue as it manifests. The rishis are said to have seen , and not just heard , the Vedas. The term for alphabet, 'varnamala', literally means 'garland of colours' or qualities or hues which the artist uses to paint reality.

Grammars (vyākaraṇas) concern the description of speech forms (śabda) considered to be correct (sādhu) through derivation and thereby serve to make understood the usage found in the Vedas. The grammar that was granted the status of a Vedāṅga is that of Pāṇini. This work is referred to in toto as a śabdānuśāsana (means of instruction of correct speech forms); since the core of Pāṇini’s work comprises the eight chapters of sūtras that serve to describe both the current language of his time and features particular to Vedic, it also bears the name Aṣṭādhyāyī (“Collection of Eight Chapters”).

His teacher was Varsa, and he was a contemporary of Katyayana, Vyadi, and Indradatta. Panini is said to have secured the favour of Shiva and obtained from him the alphabet in the form of fourteen pratyadhara sutras.

Pāṇini had before him a list of irregularly formed words, which survives, in a somewhat modified form, as the Uṇādi Sūtra. There are also two appendixes to which Pāṇini refers: one is the Dhātupāṭha, "List of Verbal Roots," containing some 2000 roots, of which only about 800 have been found in Sanskrit literature, and from which about fifty Vedic verbs are omitted; the second is the Gaṇapāṭha, or "List of Word-Groups," to which certain rules apply. These gaṇas were metrically arranged in the Gaṇaratna-mahodadhi, composed by Vardhamāna in 1140 A.D.

The Pāṇinian commentator Kātyāyana (c. 3rd–4th century BCE) knew of the coexistence of Middle Indic forms with earlier ones. There is a Pāṇinian rule that provides that verb bases listed in an appendix to the Aṣṭādhyāyī have the class name dhātu (verbal base, root). Kātyāyana discusses whether one could define verbal bases semantically and thereby possibly do without the verb list. He remarks that even if one defines a verbal base as denoting an action, the roots must be listed in order to preclude the possibility that constituents of terms such as āṇapayati/āṇavayati ‘commands’ be assigned the class name in question; āṇapayati/āṇavayati is a Middle Indic counterpart of Sanskrit ājñāpayati.

aśaraṇaśaraṇa praṇatabhayadaraṇa
dharaṇibharaharaṇa dharaṇitanayāvaraṇa
janasukhakaraṇa taraṇikulabharaṇa
kamalamṛducaraṇa dvijāṅganāsamuddharaṇa ।
tribhuvanabharaṇa danujakulamaraṇa
niśitaśaraśaraṇa dalitadaśamukharaṇa
bhṛgubhavacātakanavīnajaladhara rāma
vihara manasi saha sītayā janābharaṇa ॥

In Bengali class, Gogol is taught to read and write his ancestral alphabet, which begins at the back of his throat with an unaspirated K and marches steadily across the roof of his mouth, ending with elusive vowels that hover outside his lips

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).

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.

These [Mitanni] numerals and divine and personal names are the oldest actual specimens of any Aryan speech which we possess. The forms deserve special attention. They are already quite distinctly Satem forms ; in fact, they are very nearly pure Indic. Certainly they are much more nearly akin to Sanskrit than to any of the Iranian dialects that later constituted the western wing of the Indo-Iranian family. Thus among the deities Nasatya is the Sanskrit form as opposed to the Zend Naonhaitya and all the four gods are prominent in the oldest Veda, while in the Iranian Avesta they have been degraded to secondary rank (Mithra), converted into demons (Indra) or renamed (Varuna =Ahura Mazda). The numerals are distinctively Indic not Iranian ; aika is identical with the Sanskrit eka while ' one ’ in Zend is aeva. So the s is preserved in Satta where it becomes h in Iranian (hapta) and the exact form is found, not indeed in Sanskrit, but in the Prakrits which were supposed to be post-Vedic. Even the personal names look Indic rather than Iranian. Thus Biridaswa has been plausibly compared with the Sanskrit Brhadasva (owning a great horse). If this be right the second element, asva, horse, is in contrast to the Iranian form aspa seen in Old Persian and Zend. ... Finally we know that there existed among the Mitanni at this time a class of warriors styled maryanni which has suggested comparison with the Sanskrit marya young men, heroes.

The discovery of 'Aryan' looking names of (Mitanni) princes on cuneiform documents in Akkadian from the second half of the second millennium BC (chiefly tablets from Bogazkoy and El-Amarna), several doubtlessly Aryan words in Kikkuli's treatise in Hittite on horse training (numerals: aika- 'one', tera- 'three', panza- 'five', satta – 'seven', na(ya) – 'nine'; appellatives: varttana – 'circuit', course (in which horses move when being trained),' aliya – 'horse'), and, finally, a series of names of Aryan divinities on a Mitanni-Hatti and a Hatti-Mitanni treaty (14th century BC), poses a number of problems that have been reportedly discussed since the beginning of the century.

A treatise called Astadhyayi (or Astaka) is Panini's major work. It consists of eight chapters, each subdivided into quarter chapters. In this work Panini distinguishes between the language of sacred texts and the usual language of communication. Panini gives formal production rules and definitions to describe Sanskrit grammar. Starting with about 1700 basic elements like nouns, verbs, vowels, consonants he put them into classes. The construction of sentences, compound nouns etc., is explained as ordered rules operating on underlying structures in a manner similar to modern theory. In many ways Panini's constructions are similar to the way that a mathematical function is defined today.

Among the earliest attempts to explain Pāṇini was the formulation of rules of interpretation or paribhāshās; a collection of these was made in the last century by Nāgojibhaṭṭa in his Paribhāshenduçekhara.

The Greek form of the name, Parnos«: (from Iranian * Parna-) , corresponds to Sanskrit Pani-, if it is assumed to be a "Prakritic" development of the reduced grade form *Pmi-, The full grade seems to be found in the name Parnaya- attested as an enemy of the king (Divodasa) Atithigva in Rlgveda] Slamhira] 1,53,8 and 10,48,8. These names may go back to the same Aryan verbal root as the name of the Dasa king Pipru, namely pr- (present piparti, pr1)ati) 'to bring over, rescue, protect, excel, be able'. The ar:r• variation reflects a dialectal difference within Indo-Iranian. Some other proper names of the Dasa chiefs are also clearly of Aryan origin, for example Varcin- 'possessed of (vital) power' (ct. ~S varcas = Avestan varscan 'vital power').