In his deposition which began at 7 AM, Headley said that he was a "true follower of LeT" and came to India eight times--seven before the terror attack on November 26, 2008 and once after that.
Headley, who was made an approver in the 26/11 case, said that his main contact in LeT was Sajid Mir, also an accused in the case.
Headley said that he joined LeT after being "influenced" by its head Hafeez Saeed and took his first "course" with them in 2002 at Muzaffarabad.
Headley, who is currently serving 35 years prison sentence in the US for his role in the terror attacks, also said he changed his name from Dawood Gilani to David Headley in 2006 so that he could enter India and set up some business.
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"I applied for change in name on February 5, 2006 in Philadelphia. I changed my name to David Headley to get a new passport under that name. I wanted a new passport so that I could enter India with an American identity.
Headley also said that in his Indian visa application he had furnished all "wrong" information "to protect his cover".
He reportedly visited India many times between 2006 and 2008, drew maps, took video footage and scouted several targets for the attacks including the Taj Hotel, Oberoi Hotel and Nariman House.
said has "he (headley) has confirmed that he joined LeT after being influenced by Hafeez Saeed. He told the court that two unsuccessful attempts to carry out terror attacks were also made before 26/11". He has not explained the role of LeT in attacks".
The court is currently trying key plotter Sayed Zabiuddin Ansari alias Abu Jundal, who is facing trial for his alleged role in the terror attacks, which held the city to ransom for three days.
The deposition of Headley, assumes significance as it may unravel the conspiracy behind the brazen terror strike, which left 166 people dead.
He had then told Special Judge GA Sanap that he was "ready to depose" if granted pardon.
Judge Sanap had then made Headley an approver, subject to certain conditions and granted him pardon.
Last year, the Mumbai Police had on October 8 moved an application before the court saying that Headley deserves to be tried by this (Mumbai) court together with 26/11 key plotter Abu Jundal in the case as both of them are conspirators and abettors behind the dastardly act.
The application also said that Headley had entered into a plea agreement with US in 2010 and thereby willingly and voluntarily agreed that he had conspired.
It is evident, the police had said, that Headley has committed the offences of conspiring with LeT for committing illegal acts in India; waging war against the government of India and offences under the Unlawful Activities (Prevention) Act.
"This is for the first time in the Indian legal history that a 'foreign terrorist' will appear before an Indian court and testify," Special Public Prosecutor Ujjwal Nikam had said yesterday.