Panikhar's history is intertwined with the broader history of Kargil and Ladakh. The region has witnessed the influence of various cultures, including Tibetan and Dardic. The hot springs have likely been used for centuries by locals for their healing properties. While not a major historical center itself, Panikhar's location on ancient trade routes would have exposed it to diverse influences over time. The village's traditional way of life reflects its historical connection to the land and the surrounding environment.