The disintegration of Soviet Union in 1991 led to the emergence of 15 independent states that were part of former republics of Soviet Union. Out of these, emerged 5 states, which are called as Central Asian Republics. These Republics have gained importance in world politics for various reasons. First, there is revisit of Great Game between Russia, China and USA. Second is the presence of huge untapped hydrocarbon reserves in littoral states of Caspian Sea -- Kazakhstan and Uzbekistan. Third, the coloured revolution that has brought about democratic set up in place of the authoritarian rule. Fourth, instability in this region is conducive for cross-border terrorism especially imported from Afghanistan and Pakistan. The Central Asian Republics are plagued with extremism, separatism and terrorism that can be associated with power vacuum felt after the demise of communism and dismemberment of Soviet Union. The power vacuum, coupled with huge untapped hydrocarbons resources, has made this region a battlefield for major powers like USA, China, EU, Japan and Russia. Smaller powers like India, Pakistan, Turkey and Iran also want to stake claim on these oil resources. China has gained an edge over other contenders, as it has invested heavily in Kazakhstan, Tajikistan, and Uzbekistan. Clearly, security of China's Western border, and its internal security in Xinjiang province, depends on peace in Central Asia.