Khattar was born on 5 May 1954 in Nindana village of Meham tehsil in the Rohtak district of East Punjab, India into a Punjabi Hindu family.[5][6] His father, Harbans Lal Khattar, had migrated to the village from the Jhang district of West Punjab following the Partition of India in 1947. His family initially settled in the Banyani village of Rohtak district and took up farming.[2]
Khattar completed his matriculation (final year of high school) from Pandit Neki Ram Sharma Government College, Rohtak.[2] He then moved to Delhi, and ran a shop near Sadar Bazar[2] while completing his bachelor's degree from University of Delhi.[7]