The main purpose of the present paper was to study the transformation of caste originated values of educated subjects. The Allport-Vernon-Lindzey scale of values was administered to the subjects belonging to the various caste groups. Significant difference has been found in social value between the Vaisha caste and Sudras caste. No other difference was found to be significant. The findings have been interpreted to show the transformation of caste originated values of the people as a result of education effecting the social stratification. The meaning and function of caste appeared to be changing rapidly. The preferences and privileges granted to the Sudras (untouchables) by the Government of India have resulted in greater feeling of social superiority over other castes. Thus the findings have gone contrary to the common-sense notion that the Sudras suffer from social inferiority.