Khanewal area was populated by Zayadat Khan, the forefather of the Daha family.

An experimental train track was built from Bombay to Calcutta in 1843 which ended up being a huge success.

After seven years of continuous work, the rail track finally opened on April 24, 1865.

Since most of the track was in a straight line and those were the early days of the train system, the railway department decided to build up a flag station at Khanewal, Punjab.

The railway's department initially allowed the locals to work on flag stations but this led to operational challenges.

Therefore, they decided to hire trained staff from the United Kingdom and post them all over India to operate the railway network.

[11][12] Subsequently, the British government decided to link Karachi to these major cities of Punjab.

Therefore, keeping cost constraints and timeline in mind, it was decided to install a chord line from Khanewal to Lodhran as well.

In order to support the staff stationed in Khanewal, the railway department pushed the government to improve the area.

Work slowly continued and after 9 years in 1885, the Khanewal Lodhran Chord line became operational.

Moreover, the railway department needed more competent staff stationed here to make sure junction operations are properly managed.

With the increase in economic activity, people from Kabirwala gradually started coming to Khanewal (still called Khanewalah among locals) for work.

Work on another railway track from Khanewal to Layllpur was initiated in 1890 and on 4 April 1900, Khanewal-Toba Tek Singh was opened.

The main tribes and clans include:[19] Niazi, Seoul, Daduana, Kamboh, Matyana, Gujjar, Doltana, Sahu, Rajputs (Rana), Rajpoot Dhudhi, Awan, Sheikh, Jatt, Bucha, Nikyana Sial, Siyal, Arain, Bhati, Baloch, Khokhars Mayo Solgi (jutt) and toru.

The education system in Khanewal is formulated along specific modern, religious, cultural, social, psychological, commerce and scientific injunctions.

The system also aims to imbibe a secular outlook among the students with the awareness of the rich cultural heritage of Pakistan.

Khanewal has a wide range of schools, colleges and universities that caters to diverse streams.

Khanewal, like majority of the cities in Pakistan has both public and private educational institutions from primary to university level.

The federal government mostly assists in curriculum development, accreditation and some financing of research.