According to the Indian Census report of 2001, Muktsar had a population of 83,099. Males constitute 53% of the population and females comprises of the remaining 47%. In Muktsar, 12% of the population is less than six years of age. The average literacy rate of Muktsar is 55%, which is lower than the national average literacy rate, which is 59.5%. The male literacy rate is 60% and the female literacy rate is 50%.
The town has a rich religious heritage. It is renowned for its Sikh shrines and Gurdwaras, some of the famous shrines in the town include the Rikab Ganj, Datan Sahib, Dukhbhajan Sahib and Tuti Gandhi Sahib Gurdwara. Every year the Maghi Mela held in the town a day after Lohri is celebrated with much grandeur. Punjabi Jutti is another important event held in the town.