The paper explores the progress of regional cooperation in various functional areas as identified by South Asian Association for Regional Cooperation (SAARC) since its inception in 1985. It also examines whether and to what extent SAARC has been successful in accomplishing the goals enshrined in its charter. SAARC was formed: to promote peace, amity, stability and progress in the region; to promote the welfare and quality of life of people; to accelerate economic growth, social progress and cultural development, and; to attain collective and national self-reliance through joint efforts. SAARC made significant progress in several areas, such as: agriculture and rural development; environment; science and technology; human resource development including education, arts, culture and sports; transport; telecommunications, and information and communication technology; tourism, and energy. It has concluded several agreements and conventions besides setting up a few regional centres to realize its objectives. Generally, SAARC has not successful in implementing its programs and projects due to various reasons. It has been short of achieving several of its goals which makes its performance dismal.