This study examines the representation of Anglo-Indian characters in Urdu short stories, focusing on the relationships between Anglo-Indian married couples, their descendants, the British community, and the indigenous population. The Anglo-Indian community emerged as a result of intermarriages between employees of the British East India Company and native women. These relationships often generated economic, social, and psychological challenges for the women involved and for their children, giving rise to a distinct social group within colonial society. Although Anglo-Indians appear in Urdu fiction, they have received little attention in Urdu literary research and criticism. This study seeks to address that gap by analysing the ways in which Urdu short stories portray members of this community. The findings show that Anglo-Indian characters are generally presented as secondary and marginalised figures rather than as central protagonists. Moreover, the representation is largely confined to Anglo-Indian women, who are frequently depicted as belonging to the lower strata of society. Such characters commonly appear in the roles of prostitutes, maids, nurses, or film actresses. The study argues that these literary portrayals create a limited and often stereotypical image of the Anglo-Indian community. By examining the economic, social, and psychological dimensions attributed to these characters, it demonstrates that the reality depicted in Urdu fiction does not fully correspond to the historical circumstances of Anglo-Indians. Consequently, the study highlights the gap between literary representation and historical reality, while drawing attention to an overlooked aspect of Urdu fiction and colonial social history.