Sardar Fateh Muhammad Khan Karelvi was born into a Domaal Tribe in Karela Majhan Mendhar Poonch, son of Sardar Feroze Khan Domaal. He joined the Poonch police service as a sergeant but resigned, and began to play an active political role under the Muslim Conference of Jammu and Kashmir. Later he was elected as a member of the Jammu and Kashmir Assembly from Tehsil Mendhar Poonch.
During the First Kashmir War, he played an active role and fought against the Dogra army with Baba-e-Poonch Khansahib Colonel Khan Muhammad Khan and General Raja Sakhi Daler Khan Mangral, defeating the Dogra forces.
His son Sardar Sikandar Hayat Khan twice became the president and the prime minister of Azad Jammu and Kashmir. His other son Sardar Naeem Khan is the minister of Jammu & Kashmir.