The legend of the Bhatti's ascribe the origin of the tribe to Achal through Barsi. As a tribe, the Bhatti's are of some antiquity; their legends connect them with Jaisalmer in Rajputana. The Bhatti's in very early times were driven across the river Indus, but returned and some 800 years ago (in the 13th century) dispossessed the Langah, Joiya, and other tribes of the country to the south of the lower Sutlej, and founded Jaisalmer, which State they still hold. The leader under whom they recrossed the river Indus was Bhatti, and his two sons Dasal and Jaisal (hence the state Jaiselmer). The Bhatti's of the Punjab started converting to Islam in the 15th century during the time of Bahlol Khan Lodhi.

On the southeast border of the Punjab the subject population of Bikaner is largely composed of Bhatti's. In the central Punjab the Bhatti's hold strong positions. In Amritsar tradition the Bhatti's have a long pedigree beginning with Adam, 10th in descent from whom was Krishna, son of Jad, the son of Jadam. And the Kapurthala State was held by a Raja who sought the help of Lakhanpal and Harpal, sons of Rana (Purab Chand) of Bhatner against his foes. Accompanied by Panpal, a third son of the Rana by a Jat wife, they overan the neighboring country; but the Raja refused to give them the share he had agreed to bestow upon them. So the brothers put the Raja to death and partitioned his kingdom, with Lakhanpal taking the Bari Doab, Harpal taking the Bist Jalandhar, and Panpal taking the Ferozepur District. Rai Viru, Lakhanpal's great-grandson, founded Vairowal in Amritsar some 640 years ago (in the 15th century) and his grand-daughter, a sister of Rai Mitha, was married to Rai Ibrahim Bhatti of Kapurthala, himself a decendent of Harpal.

The Kapurthala tradition states that Rai Nanak Chand is said to have left Bhatner and settled in Bhulana, in that State. Three brothers Bhatti, Manj, and Chauhan founded the Rajput tribes so named, which settled in the Punjab.