Disclosed herein is a method and system for generating an ontology based on plurality of tickets in an enterprise system 100. The method includes processing, by the enterprise system 100, input data associated with the plurality of tickets to obtain a structured data 228 associated with each of the plurality of tickets. Also, the method comprises performing multi-level clustering on the structured data 228 to obtain a plurality of clusters and corresponding error indicators, based on one or more parameters associated with the plurality of tickets. Further, the method comprises mapping each of the plurality of clusters with each of the error indicators, to obtain a mapped data at each cluster of the plurality of clusters and generating the ontology using the mapped data at each cluster of the plurality of clusters, corresponding to the plurality of tickets. FIG. 4
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