Tejas, the Indian Light Combat aircraft, is a fly-by-wire aircraft with relaxed longitudinal stability that provides for enhanced agility, high maneuverability and performance. The aircraft is presently undergoing extensive flight test trails and the flight data gathered is being used by various design groups to evaluate aircraft systems, performance and aerodynamic characteristics. This paper gives an overview of the application of system identification techniques to Tejas flight test data for validation and update of the aircraft aerodynamic database. The aerodynamic characterization is carried out using two different approaches i) point model identification, and ii) coefficient level matching. Typical results are presented from both the approaches along with the time history plots from the flight updated aero database. The main purpose of this paper is to show how system identification techniques can lead to accurate determination of aerodynamic characteristics from flight test data.