Kharal are Panwar Rajputs. Panwar is Sub-division of Paramara (also known as Parmara, Parmar, Puar, Ponwar, Panhwar, Pawar and Panwar) Rajputs. The Paramara belongs to the Agnivansha of Rajputs.
They were Kshatriya of Himalaya originally. They are from the generation of the popular Raja of Neshapur, Raja Karan. Kharal was grand son of Raja Karan of the Mahabharata. One of the off springs Bhopa, Raja Karan's son, left Neshapur and migrated to Punjab and reached to Uch Sharif with his son Kharal in the 13th century, where he and his son were inspired by the preachings of Hazrat Makhdoom Jahanian Shah and converted to Islam by Hazrat Makhdoom Jahanian Shah.