Acharya Prashant explores the apparent contradiction between Lao Tzu's statement that true words are not beautiful and the Upanishadic concept of 'Satyam Shivam Sundaram,' which equates truth with beauty. He explains that our common understanding of beauty is superficial, sensory, and based on mental conditioning. This type of beauty is subjective, comparative, and dependent on likes, dislikes, and cultural backgrounds. It is a fragmentary activity of the mind that creates the 'ugly' alongside the 'beautiful' and seeks comfort by conforming to existing mental patterns.