This chapter explores the multifaceted role of laughter in classical performance traditions, particularly in Kathakali and Kutiyattam. It argues that laughter is not merely a vehicle for humour, but a complex performative device that constructs, communicates, and often disfigures identity. Drawing on the Natyashastra's classifications of laughter and performance case studies of characters such as Jarasandhan, Hanuman, Ravanan, and the male kari figures, the chapter examines how different modes of laughter—ranging from dignified smiles to maniacal roars—are employed to signify caste, moral positioning, emotional states, and social hierarchies. The analysis shows that while noble characters such as Krishnan and Draupadi employ restrained smiles to uphold their refined status, characters coded as demonic or primitive, such as thaadi or kari, express themselves through unrefined, often transgressive laughter that disfigures their identity within the narrative structure. Through this performative lens, laughter becomes a tool of both figuration and disfiguration, helping audiences navigate and question the cultural ideologies embedded in performance. Ultimately, the chapter reveals how classical theatre uses laughter to mediate between aesthetic form, character identity, and societal codes, positioning it as a powerful indicator of both character and context.