Kavathe is known for it historical link with Maratha Empire and because of various folk art & artiste associated with Tamasha, drama, Jagaran-Gondhal and Bharud.
Vithabai Bhau Mang Narayangaonkar's grandfather Shri Narayan Khude who formed his own Tamasha Troupe was also from Kavathe Yamai.
The village later moved to its current location when Maratha General Anand Rao I Pawar, of the Dhar State, built a walled city there.
Cultural and historical landmarks include the palace built by the Pawar dynasty in the 18th century, as well as various temples in Hemadpanthi architectural style.
)[citation needed] The Fatteshwar Temple has historical importance as it was built by Anand Rao Pawar after the Marathas defeated Nizam Ul Mulk of Hyderabad.
Common family names include Mukhekar,Rode, Bhor, Ichake, Kandalkar, Wagdare, Pokale, Sandbhor, Ghode, Yede, Ughade.
The inogural show of 'Vedat Marathe Veer Daudale Saat', a marathi drama, was performed on May 19, 1977 on the occasion of Urus and it's an example of how the various communities have lived with peace and harmony in this village.
The amateur theatre group 'Malaganga Natya Niketan' from Kavathe has staged the two historic drama's written by Bashir Momin Kavathekar all over Maharashtra & Goa during the late 1970s.
These shows of drama 'Bhangale Swapn Maharashtra' and 'Vedat Marathe Veer Daudale Saat' were performed at Pune's Bharat Natya Mandir followed by a whirlwind tour across Maharshtra and Goa.