Its is the objective of this research to study the nominal formation and compounds in the Nalopakhyana. The nominal stems are formed by adding suffixes to the roots and to the worlds already ending in suffixes. The nominal stem formation is devided into two kinds : primary derivatives and secondary derivatives. In the formation of primary derivatives, primary suffixes are added to the roots. Of the 27 suffixes employed in the Nalopakhyana, a suffix is the most frequently used ; vans (vas) suffix the least. It is also found that of the 10 traditional classes of verbal roots, the first class roots have the highest frequency among the primary derivatives and the seventh class the lowest. The secondary derivatives are formed by adding secondary suffixes to crude base of nouns or some indeclinables. Again,- a suffix ranks highest in frequency and –ina and –tha suffixes the lowest. The combining of two or more words already existing in the language into one results in a compounds.Then, compounds which are very rich in Sanskrit can be classified in 4 classes : Co – ordinatives, Dependent Determinatives, Descriptive Determinative, and Possessives, according to the system abdopted in Arthur A. Macdonell’s Sanskrit Grammar for Students. Descriptive Determinatives are the most commonly used whereas Co – ordinatives are very rare. In comparing of the frequencies of the 3 types of words used in the Nalopakhyana, it is found by the researcher that, compounds are the most used, followed by primary derivatives and secondary derivatives respectively.
