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Peer Ali Khan was a composed freedom fighter who worked clandestinely. He is said to have been born in about 1812. His nature of work was secretive, hence there is no common ground as to his birthplace. According to the report of William Taylor, an official of the East India Company who held charge as the Commissioner of Patna Division from 1855 to 1857, "Peer Ali was a native of Lucknow, but had resided for many years at Patna; he was by trade, a Book-seller, and I strongly suspect that he may have originally established himself here, for the express purpose of carrying on the intrigues which issued in this abortive out-break".

Peer Ali was a bookseller, who played a leading role in the organization of the Great Revolt of 1857 in the Patna district in July 1857. He was captured by the British after the defeat of the rebel forces. Khan was given capital punishment for participating in the freedom struggle of 1857, along with other rebels.

A road adjacent to the Patna Airport is named after him. Also, Shaheed Peer Ali Khan Park, a children's park in front of the District Magistrate's residence near the Gandhi Maidan in Patna, was named after him by the State Government of Bihar.