The 26-year-old model-actor from Hyderabad defeated 46 contestants from across the globe to be crowned the first Indian winner last night.
Khandelwal, who looked dapper in a tuxedo by designer Nivedita Saboo, received a cash prize of USD 50,000 on winning this celebrated title.
"I still can't believe that I have won the Mr World title. Being the first Indian ever to win this title internationally makes me immensely proud and ecstatic. It's a dream come true and am very thankful to the Miss India Organization for giving me this opportunity and guiding me throughout my exciting journey.
Mr World 2014 Nicklas Pedersen passed on the title to the new winner.
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Fernando Alvarez, 21, from Puerto Rico and Aldo Esparza Ramirez, 26, from Mexico were the first and second runner respectively.
The event was hosted by Filipino Superstar & Miss World 2013 Megan Young alongside professional singer & former Mr England Jordan Williams and Frankie Cena of Canada.
Khandelwal also competed for various sub-titles at the pageant like Mr World Multimedia Award, Mr World Talent, Mobstar People's Choice Awards, Mr World Sports Event and won the Mr World Multimedia Award.