Khyber Agency is the most literate of all the Tribal Areas, with a literacy rate of 34.2%, as of 2007. Quite far ahead of the next highest Agency - Kurram at 26.5%. It is also the only Agency where the majority of its men are literate, at 57.2%, which is almost 20% ahead of the next highest agency, Kurram. However, its Female literacy rate of 10.1% is 2nd after Kurram's 14.4%.
Tehrik-i-Taliban Pakistan, Lashkar-e-Islam and Tehreek-e-Nafaz-e-Shariat-e-Mohammadi militants began entering Khyber Agency after the US-led NATO Invasion of Afghanistan in 2001. Due to absence of a strong government and security network in the area and its rough, mountainous terrain, the area became a hotbed of the insurgents and over 90 percent of the agency came under their control in 2007. After 2007, the militants began attacking government and military establishments in KPK province killing many people and wounding many more. The Pakistan Army began an operation in 2008 to clear the agency of militants and restore normal life in the area. The Operation continued for years and resulted in killing of hundreds of TTP militants and Pakistan Army soldiers. The Local Aman Lashkars or Peace committees supported the army by fighting the foreign terrorists. By July 2012, a major part of the agency was cleared but military operation continued in Bara Tehsil of the agency. The Operation also Produced a large number of internally displaced people.  In October 2014, Pakistan Armed Forces launched a military offensive in Khyber Agency code-named Operation Khyber-1.