Indian mythological narratives have traditionally privileged male heroism while marginalizing female consciousness. Chitra Banerjee Divakaruni’s The Palace of Illusions (2008) rewrites the Mahabharata from Draupadi’s perspective, exposing not only patriarchal structures but also subtler forms of psychological control. This paper introduces the concept of mythological gaslighting to examine how Draupadi is emotionally and psychologically manipulated by familial, marital, and social forces that constantly invalidate her perceptions, desires, and moral judgments. Drawing on feminist literary criticism and psychological theories of gaslighting, this study argues that Draupadi’s suffering is not merely a result of overt oppression but of sustained emotional invalidation that compels her to doubt her own agency. By foregrounding gaslighting as a narrative strategy embedded within myth, the paper seeks to demonstrate how Divakaruni transforms Draupadi into a modern feminist consciousness resisting epistemic injustice. This study contributes to contemporary feminist mythological studies by reframing Draupadi not as a tragic victim but as a woman navigating and exposing psychological manipulation within sacred narratives.