In a marathon battle lasting 76 minutes, the second seed, Sandhu, kept his cool as he bounced back from being 1-2 down to settle the issue 11-5 8-11 7-11 11-6 11-7 in his favour.
The 24-year-old Sandhu would now look to stop local boy Ghosal's bid for a seventh title at the senior nationals when they meet tomorrow.
In a battle lasting 42 minutes, Ghosal did not give Dixit any chance and wrapped up the issue 11-9 11-4 11-7.
In the women's section, world No 31 Joshana Chinappa will face promising 18-year-old Anaka Alankamony, the reigning Asian Junior champion in the final.
With India number one Dipika Pallikal pulling out, Joshana lived up to her top billing to defeat Vrishrutyi Sahni of Maharashtra 11-8 11-1 11-1.
Anaka found some resistance from Delhi girl Sachika Ingale before settling the issue 11-3 11-3 5-11 12-10 in a battle lasting 29 minutes.
But it was the 24-year-old who was the toast of the day when he sweated past a promising 18-year-old Mangaonkar.
Fresh from winning his maiden PSA title (Prague Open) last month, the Maharashtra lad surprised Sandhu when he snatched the lead 2-1. MORE
