This paper attempts to understand the state’s role in providing Scheduled Castes (SC) status for Arzal or Dalit Muslims, and the struggle of Pasmanda Muslims through the Pasmanda movement for inclusion in the SC list. While doing so, it traces the trajectory of marginalization of Dalit Muslims by the state. It argues that since the inception of SC status in independent India, it was reserved only for the Hindu religion. Later on, it was amended twice: first, in 1956 for the inclusion of Sikh, and second, for neo-Buddhist in 1990. It did not include Dalit from the Muslim community. It also attempts to map the effort of Pasmanda Muslims for SC status. In this context, the paper tries to comprehend the role of the Pasmanda movement along with the struggle of social organizations. Consequently, the paper argues that these organizations fight for SC status; however, unable to make any significant intervention at the policy level. This paper also argues that there is a dissensus and intra-community contestation among Muslims regarding the Pasmanda movement and the demand of SC status for Dalit Muslims.