Hostel has existed from the beginning of the school when it was opened in 1944. In the beginning the school was meant only for those girls who stayed in the hostel. It was thought that it would be an all India institution of excellence for girls education. But that did not happen partly for lack of funding and partly by force of circumstances. In 1940s there were very few schools for girls and a vast majority of them did not get formal school education. But after independence, both Government and private sector opened more schools for girls, and there was opportunity for girls in co-ed schools, in all States and districts. Gradually KBV also just became a neighbourhood school. Sometimes in 1950s it was opened to day scholars. Today hostellers account for about 20% students in the secondary section of the school, from class 6 to 12. Primary school girls are not admitted in it.
From the beginning both the school and the hostel were open to all castes and communities. Later on it started to get aid from Ministry of Social Welfare, now called Ministry of Social Justice and Empowerment, Government of India. This was under a scheme for SC/ST students. So, for the last 30 years, it has mainly girls from SC/ST families. Till 1972, school and hostel were running from the same building which was donated in 1944 along with the land. Although it received expansion in terms of an extra floor and more rooms, it was found to be inadequate for the needs of both the school and the hostel. In 1972 the school was shifted to a new building and the old building continued to be used only as hostel. The building was old and dilapidated and it was dangerous to keep the girls there. In 2010, the Government of Delhi gave a generous grant of5.00 crores for construction of a new hostel building. It was mainly possible due to a personal interest taken in the project by Mrs. Sheila Dikshit, Chief Minister of Delhi. She had been visiting the school in the 1960s and 70s as a congress worker and was familiar with the state of the building. The hostel has a covered area of 20,000 sq.ft. It has 55 bedrooms, apart from many other rooms. Rooms are four bedded and six bedded in a bunk style (one over the other). It can accommodate 210 girls at one time. It has a very spacious kitchen and a dinning hall for about 200 girls. All rooms and facilities are well furnished. The furniture and furnishings are new and in good condition. There is a computer lab for hostel girls. They have a large screen TV for entertainment. There is a big lawn in front of the hostel building. The hostel is kept very clean and is well maintained. Mrs. Shweta Malhotra is currently the warden of the hostel.