It was said that the story of the movie has been based on Guru Dutt's life.
When the movie Rajesh Khanna had already retired from acting as he entered Politics. Then after about 3-4 years later Rajesh Khanna made a comeback in R.K.Film's Aa Ab Laut Chale.
When the movie was released more than 20 years ago, no one had botthered about the movie. But now Khudai is termed as Classic. It seems it was ahead of its time.
Rajesh Khanna was once involved with actress Deepika. During the shooting of the film they shared cold vibes .
Naseeruddin Shah was the first choice for the role. He could not accept due to being over busy. Shekhar Kapur agreed but later said no after 3 months. Finally Rajesh Khanna was signed for the lead role.