He was the son of the eldest brother Chhajjoo Khan. He was born in 1888. Aman Ali Khan did not have much liking for music in the childhood. His elder brother, Ustad Fida Ali Khan and Ustad Nazeer Khan's son Ustad Mubarak Ali Khan had died prematurely. The three brothers were, therefore, worried about the future of Bhendi Bazaar Gharana. On one occasion Aman Ali Khan was impressed by Anjanibai Malpekar's singing and he praised her. Ajanjanibai took the opportunity to explain to him that he alone inherited the treasure of music, collected with great difficulty and pains by his father and two uncles. She had learnt only a small part of the treasure. She was thus successful in convincing him that he was the only successor of Bhendi Bazaar Gharana in the next generation and it was his duty to learn music from his father and uncles. Thereafter Aman Ali Khan seriously devoted himself to learning music and pursued rigorous Riyaz. Young Aman Ali also learned Karnatic music under the guidance of Kalanidhi Bidaram Krishnappa, court Musician of Mysore state and introduced rhythm play (layakari) and style of singing notation –solfa syllables (sargam) in Bhendi Bazaar Gayaki. U. Aman Ali Khan studied the Science of Music, Sanskrit, Brajbhasha and Hindi literature and mastered the method of writing notation of a Bandish. Due to his inclination to spiritual life and influence of Vallabh Sampradaya an under current of devotion is found in many Bandishes composed by him. He was a composer par excellence ( Nayak- Waggeyakar) and his bandishes reflect the sensitive and creative poet in him, his mastery over the languages through selection of right words and use of different figures of speech, his talent as a musician of high calibre, who could present and condense all the subtleties and characteristics of the chosen Raga, as well as Bhendi Bazaar Gayaki in Bandishes. He had composed some Bandishes in Urdu also. He adopted the Pseudonym 'Amar' which was used by his father Ustad Chhajjoo Khan and included the same skillfully in most of the Bandishes.
The novelty and richness of Bhendi Bazaar Gayaki and the simple and respectable nature of Ustad Aman Ali Khan, attracted many budding artists of other Gharanas. Ustad Amir Khan was one of such artists who blended medium tempo (Madhya laya) Gayaki, intricate sargams and gamak taans in his style and learnt some Bandishes from Ustad Aman Ali Khan. Pandit Vasantrao Deshpande was also influenced by Bhendi Bazaar Gayaki and incorporated singing of complex Sargam Patterns in his style. The list of Ustad Aman Ali Khan's Disciples, also includes some artists from other Gharanas and leading artists from film Industry or light music, such as, Lata Mangeshkar, Nisar Bazmi, (music director who immigrated to Pakistan after partition) , Manna Dey, Ustad Wali Ahmed Khan, B.Chaitanya Dev and Harmonium player Shantilal.
The credit of absorbing fully sustaining and spreading Bhendi Bazaar Gayaki goes to disciples of the fourth generation namely, Pt. Shivkumar Shukla, Master Navrang, Pt. Pandurang Amberkar, Pt. Ramesh Nadkarni, Ustad Muhammed Hussain Khan and Pt. T. D. Janorikar.
Bhendi Bazaar, Gayaki includes the following prominent characteristics :
1. Akar sung in open voice.
2. Improvisation of the raga (alap, taan and sargam) based on Khandmer principle, i.e. various combinations of a given set of notes to bring
out beauty and melody of the Raga.
3. Presentation in Madhya laya (medium tempo), and madhyadrut laya (medium fast tempo).
4. Melodious smooth meends with breath control.
5. Forceful Gamak taans, sapat taans and satta taans.
6. Presentation of Bandishes having delightful mixture of shabda, soor and laya (words, notes and tempo).
7. Dance oriented structure of singing of sargams (singing complex combinations of solfa syllables in harmony with their designated pitches)
8. Individualistic and beautiful rhythm play.
9. Inclusion of some melodious ragas of Karnatak Music, such as Hansdhwani, Nag swaravali, Pratapvarali.
Ustad Aman Ali Khan shunned publicity and preferred to lead a secluded, spiritual life. He rarely sang in public performances. He followed a simple life style and he was free from any bad habits. He left Mumbai in 1947 and settled in Pune. He liked reading of books on the science of music (Sangeet Shashtra) and writing on music. He had written in Urdu a volume on music, comprising of detailed description of subtleties that human voice can produce, nuances of Gayaki, different raga swaroops and notation of 200-300 Bandishes. However, the manuscript got burnt in a fire erupted at his house. When living in Pune, Pt. T.D. Janorikar and Ustad Muhammed Hussain Khan became his disciples and learnt under him for about 5 years.
Pandit Ravi Shanker heard Pandit Shivkumar Shukla's programme once. He was so influenced by the Bhendi Bazaar style, that he met Ustad Aman Ali Khan and persuaded him to come to Delhi. Ustad Aman Ali Khan presented the Gayaki in a concert held at Bharatiya Kala Kendra in Delhi and mesmerized the learned audience. He was then invited to sing at the national programme of music in 1953 to which he had given a consent. However, due to cold weather of Delhi he suffered from an attack of pneumonia before the National programme could be arranged. He breathed his last, after that brief illness on 11th February, 1953 which happened to be Mahashivratri, considered to be an auspicious day celebrated in worship of God Shiva.