the Mahabharata and Ramayana are classified as Hindu mythology, however each have roots. to what degree the epics reflect historical events is unknown, but the basic foundations (settings and characters) of both are historically documented.
the Mahabhrata is believed to be based on wars that took place in current-day Haryana (east Punjab), and of course the famous battle of Kurukshetra would’ve been in modern-day Kurukshetra (100 mile north of New Delhi).
most historians agree that a great war took place, but are not in agreement about the date (ranging from 100BC to 3000BC. there are plausible theories, but obviously nobody knows the exact circumstances.
i found al-Biruni’s analysis of the Mahabharata to be the most interesting.
here’s a sample of an Aryan-invasion based theory (an anti-Hindu view)…although the Aryans vs. Non-aryans piece is the controversial part of this theory (pure speculation), most of the other “facts” are well-documented
if you notice, there is an insinuation that the wars of the Mahabharata were Aryan invasion wars. similarly, there has been much speculation that Rama was an Aryan warrior fighting against Dravidians (Ravana and co). of course, this is extremely insulting to Hindus, but it is a commonly offered theory. in all likelihood, there was a King Dasharatha of Ayodhya with 2 prince sons called Ram and Laxman. there is no way of knowing whether or not their reported endeavors and activities actually took place. my guess is that the fantastical elements (army of monkeys, Ravana having 10 heads, etc.) are added pieces to a likely real basic plot.
of course it goes without saying, the value of these epics is wholly unrelated to the historical validity of the storied events. we will never know the actual degree of validity ranging from 0% to 100%.