The research article is structured into three distinct sections to fulfill its primary objective. The initial section provides a comprehensive background to the paper, setting the stage for the subsequent discussions. Moving forward, the second section delves into a comparative analysis between the fundamental aspects outlined in the “United Nations Commission on International Trade Law” (UNCITRAL) Model Law and the pertinent provisions of the “Insolvency and Bankruptcy Code, 2016” (IBC). This comparison aims to highlight areas of convergence and divergence, laying the groundwork for further examination. In the third section, the focus shifts towards exploring the intricacies of the cross-border system within the framework of the IBC. This involves a critical assessment of challenges and opportunities, including a thorough analysis of recommendations put forth by the “Insolvency Law Committee” (ILC). This segment scrutinizes the efficacy of existing mechanisms and proposes potential avenues for improvement, particularly in fostering cooperation between local and foreign courts, as well as insolvency representatives. Final comments and recommendations conclude the study paper. For simplicity, the study's primary results are summarised into three points. First, the UNCITRAL Model Law may help structure India's cross-border bankruptcy system and encourage stakeholder collaboration. The preservation of the public policy exemption may complicate the recognition of international proceedings, notably for foreign creditors seeking relief under the planned cross-border insolvency structure. Finally, a specific section consistent with ILC guidelines might provide a complete cross-border insolvency structure under the IBC. Suggestions for improving current rules provide policymakers with useful knowledge.