The city is located on the bank of the Kunda river and is known for its cotton and chilly (chili pepper) production.

[7] According to mythology, the name "Nimar" was derived from the word "Nimarya" (निमार्य), which signifies that the land had belonged to both the Aryas and the non-Arya.

[8] At different times in history, the area was ruled by the Kingdoms of Haihayas (हैहय) of Maheshwar, Parmar of Malwa, Ahirs of Asirgarh,[9] Muslims of Mandav, Mughals and Marathas.

After the formation of the state of Madhya Pradesh on 1 November 1956, the district came into existence as West Nimar (पश्चिम निमाड़).

Here the very ancient Shri Navagraha Temple is situated on the banks of the Kunda river, due to which the city is known as Navgrah ki Nagri (City of Navagraha), Near 17 Kilometer, Oon is a very old village in which are 99 Bhumija-style temples built by emperor Ballaleshwar.

[10][11] Khargone is located in the south-west border of Madhya Pradesh, 258 metres (846 ft) above sea level.

Khargone is in the middle of the Narmada River valley with the Vindhyachal mountain range situated in the north and Satpura in the south.

Summers are extremely hot and dry in this region, lasting from mid-march to mid-June followed by the monsoon season.

Local people are commonly affected by the flooding of river Kunda, which flows from the outskirts of the city.