The Order includes members of three classes: No appointments have been made since the 1948 New Year Honours, shortly after the Partition of India in 1947.

Following the death in 2009 of the last surviving knight, the Tej Singh Prabhakar, Maharaja of Alwar, the order became dormant.

Several years after the Indian Rebellion of 1857 and the consolidation of Great Britain's power as the governing authority in India, it was decided by the British Crown to create a new order of knighthood to honour Indian Princes and Chiefs, as well as British officers and administrators who served in India.

On 25 June 1861, the following proclamation was issued by Queen Victoria: The Queen, being desirous of affording to the Princes, Chiefs and People of the Indian Empire, a public and signal testimony of Her regard, by the Institution of an Order of knighthood, whereby Her resolution to take upon Herself the Government of the Territories in India may be commemorated, and by which Her Majesty may be enabled to reward conspicuous merit and loyalty, has been graciously pleased, by Letters Patent under the Great Seal of the United Kingdom of Great Britain and Ireland, to institute, erect, constitute, and create, an Order of Knighthood, to be known by, and have for ever hereafter, the name, style, and designation, of "The Most Exalted Order of the Star of India"[1]19 persons were appointed Knights Companion at the creation of the Order:[1] 12 additional Knights Companion were appointed over the next five years.

Former viceroys and other high officials, as well as those who served in the Department of the Secretary of State for India for at least thirty years were eligible for appointment.

Kashi Naresh Prabhu Narayan Singh of Benares and Sir Azizul Haque were appointed Knight Commander of the Order of the Indian Empire (KCIE) in 1892 and 1941 respectively, Knight Grand Commander of the Order of the Indian Empire (GCIE) in 1898, and Knight Grand Commander of the Order of the Star of India (GCSI) for his services in the First World War in the 1921 New Year Honours.

The order's statutes were specially amended to permit the admission of Queen Mary as a Knight Grand Commander in 1911.

Members of the Order wore elaborate costumes on important ceremonial occasions: On certain "collar days" designated by the Sovereign, members attending formal events wore the order's collar over their military uniform, formal day dress, or evening wear.

They could, furthermore, encircle their arms with a depiction of the circlet (a circle bearing the motto) and the collar; the former is shown either outside or on top of the latter.