The fame of Chaghar Matti is due to the Tomb of Ashab Baba (a companion of Muhammad) being located in the region.

To the east of Chaghar Matti, Peshawar City is situated, to the west Bara and Warsak, to the north Mechani and Shabqadar and to the south, University Road.

Another theory is that the name may be given by Sikhs, called it "Chakni Matti" due to its fertile soil.

At the east end of the village is the resting place of Mian Ji Baba ( میاجی بابا), who was a pious and religious person of great stature.

To the South West of the village near Pir Kalay, the resting place of Sharhsham (Gul) Baba is another attraction due to the abundance of date palm trees.

This place is said to be the camping ground of Ashab Baba ( اصحاب بابا ), who brought dates with them as a food ration for the troops.

The locals consider these palms sacred and as opposed to other kinds of trees, the branches or trunks are not burnt as fuel for cooking.

However, the branches have been used for heating water for ablution in the mosques and the trunks are still used to bridge small irrigation drains.

A branch of the Kabul River called Shahalam flows in the outskirts of Chaghar Matti, playing an important role in the economy of the village.

He along with other Mujahedeen, reached this particular place of Peshawar in order to fight against Hindu Rajas and raise the flag of Islam.