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Khanna is a city and a municipal council in the Ludhiana district of the Indian state of Punjab. Khanna is a Punjabi word, which means One Quarter (1/4 or 0.25). The city was named thus because of its size, which used to be just a quarter of what a normal city should be. In other words, it used to be a very small city.

Khanna has the biggest Grain Market of Asia followed by the Grain Market of Rajpura Punjab and is on the internet. This is an ancient town which came into existence 500 years back. History reveals that Sher Shah Suri built a number of sarais (inns) at every 12 to 15 miles along the Delhi-Lahore road. One of the sarais was built in this area which is still known as the Purani Sarai. After the decline of Mughal rule in the Punjab, Banda Bahadur captured the area from Sirhind to Hoshiarpur.

After that a Jathedar of Dahedu controlled and occupied the whole of the area from Dahedu to Nabha. He married his daughter Daya Kaur to King of Nabha. When a family dispute arose between King of Nabha and Rani Daya Kaur she left Nabha for good and came back to Dahedu to her parental home.

According to Indian conventions she could not remain with her parents forever. Therefore, her father cut out a KANN which signifies a 'small portion' of the territory between Dahedu and Nabha. It is well known for its agriculture. With the passage of time, the word KANN came to be known as KHANNA.

The city is located at a distance of 40 km from the city of Ludhiana on the Grand Trunk Road (National Highway 1) and is home to Asia's largest grain market. Its area is about 70 km2. Villages nearby include Payal, Ikolaha, Rahoun, Isroo, Harion Kalan and Boothgarh, Bulepur, Rasulra.