Scholarly Communication is an inclusive process that represents all forms of dissemination of research output which is passed from author to readers through  publishers, universities and libraries.  This paper considers a range of definitions for a modern library from the perspective of scholarly communication. It then elaborates the salient features of scholarly communication, issues, challenges and opportunities involved in creating and maintaining a digital library in Indian Universities.   
Key words: Scholarly Communication, Digital Libraries, Issues, Challenges and Opportunities.