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Charvaka, also known as Lokayata, was an ancient materialistic school of Indian philosophy that rejected the existence of a transcendent reality and upheld empirical perception as the only valid means of knowledge. According to Charvaka philosophy, the theory of illusion, or Maya, is central to understanding the nature of reality.

Charvaka philosophy posits that the world is composed of material elements and that consciousness arises from the physical body. They argue that consciousness is a byproduct of material processes and does not exist independently of the body. Therefore, Charvaka rejects the notion of an enduring self or soul (Atman) that persists beyond death.

Regarding the theory of illusion, Charvaka maintains a radically empirical stance. They assert that the perceived world is real and tangible, existing independently of any transcendent reality or divine power. According to Charvaka, what is directly perceived through the senses is the only reality, and anything beyond sensory experience is merely speculative and devoid of validity.

In contrast to schools like Advaita Vedanta, which consider the world to be an illusion (maya) obscuring the true nature of Brahman, Charvaka contends that such metaphysical assertions lack empirical evidence and are therefore baseless. They advocate for a pragmatic and materialistic worldview, emphasizing the importance of sensory perception and empirical evidence in understanding reality.

Overall, Charvaka's theory of illusion challenges traditional metaphysical conceptions and advocates for a materialistic interpretation of reality based on empirical observation and sensory experience. They reject the existence of a transcendent realm and assert the primacy of the physical world as the only valid domain of inquiry.