It snapped an image of the barren surface and its myriad craters caused by a barrage of wayward meteorites.
The photo was taken at a height of 1,646 miles (2,650 km) above the moon and includes a look at the Apollo crater and the Mare Orientalis.
The Indian Space Research Organisation said it has manoeuvred Chandrayaan – the Sanskrit word for ‘moon craft’ – into lunar orbit on Tuesday.
The precise moment that happened was 09:02 local time (04:32 GMT) and Chandrayaan will continue circling the planet in a tighter orbit until reaching a distance of about 62 miles from the surface.
The lander will then separate from the orbiter and use rocket fuel to brake as it attempts to land in the south polar region of the moon on September 7.
A rover will search for water deposits which were confirmed by a previous Indian moon mission.
Scientists have said the water deposits could make the moon a good refuelling station for further space travel.
The $145m (£116m) mission was launched on 22 July and Indian officials hope it will be the first to ever land on the Moon’s south pole.
It is the Indian Space Research Organisation’s (ISRO) second lunar probe, and the first one destined to land on the moon, and is scheduled to land on September 6.