Khuda Bakhsh Library is not merely a library. It is in fact a nucleus of multidimensional activities. It caters intellectuals and scholars, promotes research, advocates communal harmony and also serves public.
During the last fifty years it has organised about 200 lectures, talks, group discussions and debates. Eminent personalities have delivered lectures on a number of topics.

International seminars have been organised on manuscript literature on Tibb (Unani Medicine), Tasawwuf (Islamic Mysticism), Quranic sciences, Medieval Indian history followed by the seminars on Urdu Mss. and on lndo-Uzbek relations. Free India and Dr.Zakir Husain were the topics for national seminars. Besides, symposia on Reservation for Muslims and Indian Woman have been arranged in the library.

Several talks have been organised on health care and hygiene specially for public awareness. The library also arranges national & International Mush'ara's (poetry recitation) and Qawwalis besides film shows representing Indian culture and also documentaries.

Khuda Bakhsh struggled throughout his life for communal harmony. The library thus represents this quality of the Founder through its collection and holds group discussions on the issue.

The Library has been recognized as a research centre by seven universities, namely, Shantiniketan, Hamdard, Kashmir, Gulbarga, Magadh, B.R.Ambedkar and Jamia Millia Islamia. It encourages scholars and provides them all research facilities including free accommodation. It awards ten research fellowships - three Senior and seven Junior for a period of two years and helps them to do Ph.D. / D.Litt. if they are interested. Otherwise it assigns different projects to them, for example, editing of manuscripts, compilation of descriptive catalogue of manuscripts, indexes of Urdu periodicals and subject bibliographies etc. Besides, it also offers lumpsum amount to retired professors to do work on our manuscripts.

Compilation of descriptive catalogue of manuscripts is a research work. Our catalogue published so far contain rich information about the manuscripts hence are highly valued in the academic world. 31 volumes of the catalogue had been brought out before the partition. The work was slowed down after independence since the qualified and trained cataloguers were not available. Even five volumes were compiled and published. All the 36 volumes with new serial order have been reprinted with an index appended to each volume. Moreover, the hand-list of manuscripts in Arabic (3 vols.), Persian (3 vols.) and Urdu (1 vol.) were also prepared and printed.

The Library facilitates exchange of scholars with other countries and takes steps for sharing its resources with other libraries either in India or outside to enrich its collection.

The Library arranges exhibitions of its collection from time to time. It keeps on regular display new arrivals. Apart from the exhibition of books, it has also displayed its rare calligraphic masterpieces, gorgeous paintings and manuscripts on Quraniyat (Quranic sciences) and, Islamic sciences at different occasions in the library. Books on Indic religions have also been kept on display in National Museum, New Delhi.