He was conferred the hereditary title of Sardar Senapati (or Sarsenapati, Commander-in-chief, Duke) by Shahuji, the grandson of Shivaji on 11 January 1717.

Most notably, from 1705 to 1716, Sardar Khanderao Dabhade led the Maratha Empire forces in Baroda.

His widow, Sarsenapati Umabai Dabhade, was the first and only woman to become Commander-in-Chief of the Maratha forces in 1732.

The Deccan College in Pune, the third oldest educational institution in India, was founded by the Dakshina Fund bequeathed by Sarsenapati Khanderao Dabhade.

In 1821, the Dakshina Fund was named the Hindoo College by Mountstuart Elephistone, the Governor of Bombay Presidency.