Education is a crucial factor in influencing the pattern and timing of marriage for women, and the changes in levels of female literacy will also change the dynamics of family formation. India has experienced consistent improvement in levels of female literacy; therefore, this study examined the association of women's education with the changes in their demographic behaviour in the Indian context. The central idea of the paper is to examine the differences in age at marriage and first birth, choice of marriage partner and the number of children ever born based on educational attainment of women. In addition, the study examined incongruence in years of schooling and discontinuation from school, for children based on education of the mother. The study utilized data from the third round of District Level Household and Facility Survey. The sample constituted 344,164 ever-married women aged 35 years and above with surviving children aged 5-20 years. The results imply that women with higher education are more likely to marry late and have fewer children compared with less educated women. Accordingly, increase in education of women also increases the probability of marrying men with better education than themselves. The study further observed that education of wife has a greater association with the number of children ever born than the education of husband. At the same time, incongruence in years of schooling and drop-out from school are both high for children of uneducated women. The study also found that the children from urban areas are more likely to drop out than their rural counterparts. In addition to education of the mother, number and composition of children in the family and economic condition of the household are some other factors that influence the educational attainment of children.