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This research article is based on the Jacques Lacan�s theory of �The Mirror Stage� his perspectives on the development of human identity and the process of the identity formation His major contribution is to show how human identity is constructed just via language, how human development and human identity is contingent on the language. Language itself is in flux, constantly fluctuating. He actually conducted a mirror test placing a child in front of the mirror and watching the child gradually learned to recognise itself in mirror. Thus this test lead to the development of the theory of �The Mirror Stage� It is important to discuss the Lacan�s theory of the mirror stage as it emphasise the development of the human identity, how this stage contributes in the language acquisition process as well as how the whole process of identity formation and language acquisition remains an unaccomplished project. Lacan brings to light the idea of formation of �I� as we experience in the psychoanalysis. Lacan�s main formulation is it the lack of something that causes the gain of the signifiers. Thus language is always connected to the loss of the object and the desire. Language itself is about lack, as signifiers do not lead to any final meaning but more signifiers.