Sister of Indian television actress Nigaar Z Khan, Gauhar was born into a Muslim family in Pune, Maharashtra. After completing her education from Mount Carmel Convent High School Lullanagar, Pune, she ventured into modelling. Gauhar has featured in the commercials for Ford Ikon and Tanishq jewellery and has also modeled for Manish Malhotra.
In 2002, she participated in Femina Miss India contest, where she came fourth and represented India in Miss International contest that year. Then she was seen in a couple of music videos and also Zoom TV film gossip show Page 3. Later she appeared in a TV show The Khan Sisters, with her sister Nigar, which was Indian version of Keeping up with the Kardashians.
Gauhar had also participated in Jhalak Dikhhla Jaa where she ended up as the runner up. Her acting career started in 2003 with film Miss India, which was followed by Rocket Singh: Salesman of the Year, Game and Ishaqzaade. She also did item songs in Aan: Men at Work and Once Upon a Time in Mumbaai.