[1] The origins of the community lies in the Punjab region, and the word "Khatri" itself is a Punjabi form of Kshatriya.

Most of the Muslim Khatris were warriors and chieftains during the medieval era, many were employed as generals and soldiers under Mughal Empire.

The mediaeval Gujarat Sultanate was founded by Zafar Khan, who was either a Punjabi Muslim Khatri[5] or Rajput.

In 1583, he escaped from the prison and with the help of the nobles succeeded to regain the throne for a short period before being defeated by Akbar's general Abdul Rahim Khan-I-Khana.

Historically, this community lived in Delhi, and other North Indian towns, but after the Partition of India, a lot of these people moved to Pakistan.