This book is about the development of an anaphor resolution system for Sanskrit which was carried out by the author in his M.Phil. program at JNU. It Provides a detailed study of Sanskrit pronominals basing the study on the text of Panchatantra and then gives an algorithm for resolving lexical anaphors automatically. It also discusses the issues and challenges in designing the system. The computing task involved has also been taken up in the form of methods and techniques applied to bring about the system. Computing has been the final and ultimate goal of the work done in this book. The system architecture and design is explained with the sample code of JSP and Java.The system described here has been named SARS (acronym of Sanskrit Anaphora Resolution System) and at present it takes care of lexical anaphors only. The author is engaged in the further enhancement of the system. The system is available on line at http://sanskrit.jnu.ac.in/sars/index.jsp