In 1778, the Peshwa distributed this territory to the Maratha rulers: Holkars of Indore, Shinde (Scindia)11 of Gwalior, and Ponwars of Dhar.

After the independence and merging of the Princely states into the Union of India in 1948, this territory became West Nimar district of Madhya Bharat.

The major cash crops of the Khargone district are cotton, soybean, and chilli pepper.

One of the major spinning units is the cooperative Jawaharlal Nehru Sahakari Soot Mill, situated on Julwania Road.

[citation needed] The famous Sendhwa cotton hub is just 70 km from Khargone city.

A famous mandi[clarification needed] of chilli at Bedia is located about 50 km from Khargone city.

[2] In 2006 the Ministry of Panchayati Raj named Khargone one of the country's 250 most backward districts (out of a total of 640).

Other towns include Maheshwar, Kasrawad, Segaon, Bhagwanpura, Jhirnya, Bhikangaon, Gogawan, and Barwaha.

The district consists of six Vidhan Sabha constituencies: Bhikangaon, Barwaha, Maheshwar, Kasrawad, Khargone, and Bhagwanpura.