The iron ore bodies in the form of lensoidal and pocket type deposits occur within the Meso to Neo-Proterozoic meta-sedimentary rocks and albitites of Ajabgarh Group of Delhi Supergroup in Khetri basin, Western India. These are exposed as detached and linear ore bodies at the southern (western flank) and south-eastern (eastern flank) part of the Khetri copper deposit which follows the regional trend of the host rocks. The detailed field and petrographic studies reveal that the magnetite and hematite are associated with major silicates like quartz, actinolite, muscovite, biotite, albite and, K-feldspar. Some minor occurrences of apatite, sphene, ilmenite and monazite are also found. This work is focused on understanding the evolution of albitite-hosted magnetite with respect to tectonic signatures, the source of mineralizing fluid, and its spatial relationship with the regional albitites and meta-sediments. To interpret the above, whole rock geochemistry of albitite rocks, magnetite ore and mineral chemistry of fluorapatite, were adopted.The whole rock geochemistry of albitite suggests that the parent rocks are of calc-alkaline magma series that are originated from the subduction-related rift zone of volcanic arc environment. The apatite chemistry signifies that these are evolved from the highly fractionated granitic rocks (granitoid) at moderate to high oxidizing conditions. Some deformed apatite grains are also encountered having small distorted monazite inclusions. Thus, it has an indication of high-temperature metasomatic/hydrothermal fluids that may be responsible for the removal of REEs from apatite and re-nucleate as monazite inclusions within it. Therefore, the overall evidence and associations of albitite with apatite-magnetite is demonstrating that the source rock of the study area could have evolved from the arc system of active continental margin which was abundant with Fe, U, REEs, etc. Hence, the sources rocks were suitably metasomatized by hydrothermal fluids channelized through the regional shear zone and simultaneous precipitation of the magnetite in the study area. The dominance of magnetite, associated REEs, apatite, and non-association of sulfide minerals with the magnetite in the area of study has close similarities with the IOA type deposits.