Panchtantra has maintained a significant position in the ancient history of Indian literature. The stories and fables in the book have spread all over the world and are taken seriously by many folklorists in the world. Panchtantra has exerted greater influence on folk literature in various oriental countries. Illustrated with many facts, this paper proves the wide-ranging influence of Panchtantra in China, the Middle East, South Asia and East Asia, and fully confirms the book's great contribution in the developmental history of folk literature in the world.