 In the theory of the two truths, as we know it today, maybe unknown to the earliest start of Buddhist thought in India. Contemporary scholarship suggests that the Buddha himself may not have made any explicit reference to the two truths. The early textual materials such as Pali Nikāyas and āgamas ascribe to the Buddha does not make explicit mention of the distinction of the two truths. Recent studies also suggest that the two truths distinction is an innovation on the part of the Abhidhamma which came into prominence originally as a heuristic device, useful for later interpreters to reconcile apparent inconsistent statements in the Buddha’s teachings (Karunadasa, 2006: 1; 1996: 25–6 and n.139, The Cowherds, 2011; 5). This distinction is however not entirely disconnected from the Buddha’s teachings. The antecedent hermeneutic distinctions drawn in the Aṅguttara Nikāya (AN II.60) between two linguistic concepts (paññatti) – nitattha (Skt. nitārtha) and neyyatta (Skt. neyārtha) – provides us with a useful insight into the rationale basis from which later develops the formulation of the two truths distinction. This latter pair of terms deals with the hermeneutic strategies explaining the purported meaning of the Buddhist scriptural statements. Nitattha is a statement the meaning of which is “drawn out” (nita-attha), definitive and explicit, taken as its stands, and neyyattha is a statement the meaning of which is “to be drawn out” (neyya-attha) and interpretive (Karunadasa, 1996: 25). The commentary (Aṅguttaranikāya Aṭṭhakatah II.118) on the Aṅguttara Nikāya II.60 explores nitattha/neyyattha distinction’s connection with the sammuti/paramattha distinction. This simple heuristic device however stimulated rich philosophical exchanges amongst the Buddhist philosophers and practitioners, not to mention the exchanges with traditional Hindu thinkers. The exchange of different ideas and views of the two truths between the early Buddhists, among other factors, gave birth to Buddhism as the philosophy we know today. The transformation of the two truths theory from a simple hermeneutic strategy to a complex system of thought with highly sophisticated ontological, epistemological and semantic theories blurring a clear methodological distinction between “reality” and “truth”. As always two terms – reality and truth – are expressed with one Sanskrit term satya; often reality/truth is seen as having an interchangeable usage and meaning. This philosophical development is perhaps the most significant contribution resulting from the schisms the Buddhism experienced after the Buddha passed away (ca. 380 BCE). Various schools with varying interpretations of the Buddha’s words soon appeared in Buddhism, which resulted in a rich and vibrant philosophical and hermeneutic atmosphere.