Background: Digital avatars in Massively Multiplayer Online Role-Playing Games (MMORPGs) serve as dynamic representations of the self, enabling users to perform identity, negotiate social norms, and explore personal aspirations. While prior research has predominantly centered on Western contexts, little is known about how avatar-mediated identity unfolds in culturally distinct environments such as India. Objective: This study explores how Indian MMORPG players construct and interpret their avatars as tools for identity negotiation, cultural expression, and social interaction. Method: Using a qualitative research design, in-depth semi-structured interviews were conducted with 20 Indian MMORPG players. Reflexive thematic analysis was employed to examine the narratives surrounding avatar creation, self-presentation, and symbolic meaning. Results: Three key themes emerged: (1) avatars as ideal selves, where participants projected aspirational traits and mitigated self-discrepancy; (2) gender and role experimentation, involving the playful and strategic exploration of alternate identities; and (3) cultural embodiment, where avatars were infused with traditional aesthetics, mythological references, and symbolic moral values. Participants reported that these digital personas influenced offline perceptions, offered emotional relief, and supported social alignment in virtual communities. Conclusion: Avatars in Indian MMORPGs are not merely cosmetic tools but act as identity mediators embedded in cultural, psychological, and relational processes. Findings offer implications for culturally aware avatar design and deepen HCI's understanding of how digital selfhood is co-constructed in non-Western contexts.