There are more than 37 castes living in this ethnically diverse municipality including Brahmin, Chhetri, Rai, Newar, Tamang, Limvu, Sherpa, Bhote, Khaling, Ghale, Thakuri, Gurung, Magar, Kumal, Kami, Damai, Newar, Sunuwar, Bhujel. , Dhimal, Majhi, Sarki and other Marwari, Tharu, Yadav, Thakurs from Madheshi. Among them, Chhetri, Rai, Newar, Brahmin (Hill), Tamang, Kami, Gurung and Magar castes are prevalent, while Kumal, Sherpa, Damai, Saraki, Kulung, Limwu are common. Similarly, Bhote, Dashnami, Majhi, Bhujel, Yakkha, Yamfu, Marwari, Tharu, Khaling, Ghale, Muslim, Lhomi, Thakur, Sunuwar etc. have a small number. According to the municipal picture 2076, there are tribal tribes (about 61.75 percent) and Brahmins (about 26.12 percent) and Dalits (10.45 percent). According to National Census 2068, Brahmin and Chhetri accounted for 28 percent, Rai about 16.15 percent, Newar 9.4 percent, Tamang 7.58 percent, Kami 7.21 percent, Gurung 6.55 percent and Magar 6.05 percent while Kumal, Sherpa, Damai, Saraki, Kulung and Limwu were 3.34, 2.77 2.66, 1.89/1.46 and 10 percent respectively.

According to the poster of the municipality 2076, in Khandwari municipality, there are people who believe in Hindu, Buddhist, Kirat, Christian, Muslim and Jain ways. In this area, where all religious people live, there is mutual tolerance and harmony in the society according to the religious point of view. Numerically, 70 percent are Hindus, 20 percent are Buddhists, 7 percent are Christians, and 2 percent are Christians. Those who believe in Muslim and Jainism are extremely low at around 0.1 percent. Detailed information regarding this is mentioned in the graph.