"This experience, my journey beginning today with the United Nations is quite a learning curve for me," she said in her remarks to the students and members of civil society.
"I am a great believer in the UN because uniting for a better world is what we all are very passionate about here. Unity takes courage, commitment and leadership," she said.
Sharing a lesson she learnt from her father, Aishwarya urged students to let go of their egos and and recognise "that it is about we and us and not I."
"We need to cut out our wants, desires, basic ambition to try and override each other and expand power. Only then we will be able to find our peace," she said.
She concluded her address with the Sanskrit shloka 'Om Shanti' noting that peace is not just a word but a "divine manifestation which we have to give birth to within ourselves."
Referring to the menace of war and weapons, Aishwarya said it is hard for her to imagine that young people think of making a weapon which could destroy nations and generations.
"In mankind's bid to work on our defenses with each other, we are encouraging misguided genius. This is something we really need to be thinking about," she said.
Earlier Aishwarya joined Ban, Douglas and other UN dignitaries to commemorate the International Peace Day, describing the occasion as an "absolute honour."
The International Day of Peace is observed around the world on September 21. The ceremony was held at the Rose Garden early Friday morning.
"It is an absolute honour to be here. I am glad I have been able to participate because it truly is an honour and I am looking forward to the whole experience," Aishwarya said after the brief ceremony.
The Bollywood star said she was glad to be able to contribute in sending out a powerful message of peace.
