Barhani Bazar is a town as well as a nagar panchayat situated in the Siddharthnagar District in the state of Uttar Pradesh in the northern part of India. The town of Navgarh is the district headquarters of the Siddharth Nagar district. The district is a part of the Basti division. The district harbours the town of Kapilavastu, which was the kingdom of the father of Lord Buddha. Gautama Buddha lived there till he reached the age of twenty-nine years. It is a new district, which came into being in the late 1980s from the partition of Basti of Uttar Pradesh. It is positioned on the international border of Nepal and India. According to the 2001 census of India, the total population of the district is 2,038,598. There are 1,047,573 males and 991,025 females. The average literacy rate of the district is 43.97%. The major tourist place is Kapilavastu.

As per the 2001 India census, Barhani Bazar has a population of 11,824. Males comprise 53% of the population and females make up 47%. Barhani Bazar has a mean literacy rate of 60%, a bit higher than the nationwide standard of 59.5%. 60% of the males and 40% of the females are literate. 18% of the population is children below six years of age.