Caste in contemporary Indian society has often been seen as a remainder of waning tradition. Advent of egalitarian liberalism and/or capitalism is taken to be the force of change which is destroying or restricting the relevance of caste in contemporary society. Against such a view, this paper will argue that caste remains an important frame of reference for defining people's identity especially in rural society. In particular, I would like to discuss the role of people's agency in the reshaping of caste in contemporary rural Orissa. It is the aggregate efforts of different groups of people in local situations to constantly redefine the form and meaning of caste that maintains its relevance. I feel this aspect has been neglected in many previous theories, which have tended to consider caste concerns merely in terms of the presence or absence of ‘hierarchy’ or in terms of ‘substantialized’ group formations.