Gradual development of improved types of sensor, image processing techniques, image fusion capability, innovative optical designs and AR coatings have enabled thermal imaging technology to undergo revolutionary advancements leading to the realization of all time and all weather vision. It has now been possible to have alight weight hand held thermal imaging system using uncooled detectors as well as very long range system for surveillance, target acquisition, tracking and guidance using FPAs. Not only has India made significant progress in the field of thermal imaging but innovative work has been carried out in order to enhance the performance of these systems. This has resulted in the development of a thermal imager giving ranges of 4 Km plus used in 'Fire and Forget' type missile in addition to thermal imagers for AFVs. A state-of-the-art second generation thermal image for airborne application co-developed with M/s TCO, France is under evaluation and testing. Innovative optics design has led to the enhancement of the range capabilities by 1.7 times of a hand held thermal imager of French origin. The paper focuses on intricacies of system as also technological capabilities in India including design capability of most sophisticated IR optical system, Single Point Diamond Turning for generation of aspheric and metal optics, Laser Interferometer for characteristics of lenses, multilayer AR coating and DLC coating, IR Image Evaluation System etc. Work carried out on Binary optics for Thermal Imaging System at IRDE as well as on indigenous development of thermal sensors, ASICs, Rigi-flex PCBs etc. for micro- miniaturization of electronics being progressed at various work centers are also discussed.