Chanderi is also famous for its brocades and muslins, specially for its handwoven Chanderi sarees. Here, master weavers use silk and cotton to create dazzling weaves, distinguished by beautiful borders. Usually in subtle hues, the Chanderi sarees have a sophistication hard to match. In the silk Zari sarees, influences of the Varanasi style are visible. They generally have a rich gold border and two gold bands on the pallav. The more exclusive ones have gold checks with lotus roundels all over which are known as butis.

The documented history of Chanderi goes back to the early 11th century and is a kaleidoscope of movement and activity prompted by its strategic location. On the borders of Malwa and Bundelkhand, the town dominated the trade routes of Central India and was proximate to the arterial route to the ancient ports of Gujarat as well as to Malwa, Mewar, Central India and the Deccan. Consequently, Chanderi became an important military outpost, prized by rulers with power or ambition, and repeatedly experienced the might of men who moulded the destiny of Hindustan.