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This report is a review of the First National Conference on Knowledge Representation and Inference in Sanskrit, Bangalore, India, 20 through 22 December, 1986 The conference was inspired by an article that appeared in the Spring 1985 issue of AI Magazine--"Knowledge Representation in Sanskrit and Artificial Intelligence." A working group has been created to pursue the goals of the conference and to possibly arrange another conference for 1987 and 1988 This conference is analogous to the consultation of philosophers and cognitive psychologists by computer scientists in the beginnings of AI. Western psychology and philosophy is quite different from the Indo-Aryan tradition: the former has its basis in Aristotelian logic and the scientific method, whereas the latter is also based on introspection and internal experience Nevertheless, both these schools have converged in the analysis of natural language and the extraction of the semantic message from a text.The purpose of AI in this context is to derive a "method" for natural language understanding; the purpose for the Sanskrit scholars was to understand the nature of language and thought in and of itself. Hence, for the Sanskrit scholars, the actual methodology was implicit; it was not the focus. The purpose of the conference was to extract this hidden "algorithm" of automatic semantic parsing from the Sanskrit pandits.