In the Asian federal states parliamentary democracy presents an exclusive interaction of governance framework, constitutional structure and cultural diversity. The aim of this study is to observe innovations and challenges that characterize the working of parliamentary system in the Asian federal framework. Main issues include addressing the intergovernmental tensions, protecting rights of minorities ans confirming equitable representation by maintaining national unity. The study also underlines constraints that is levied by economic disparities, political instability and shifting geopolitical dynamics that impact efficiency of parliamentary democracy in the federal systems. Comparative studies from nations like India, Malaysia and Pakistan provide insights to success and limitations of these approaches, showing lessons for other areas. The research argue the interaction between parliamentary democracy and federalism in Asia requires a more nuanced method that considers the historical, cultural and institutional factors.