Most clay minerals are characterized by a platy morphology. By contrast, palygorskite has a fibrous morphology and is structurally distinct from the typical 1:1 and 2:1 layer structures. Diverse opinions exist on the origin of palygorskite in soils. Many authors suggest that palygorskite forms after smectite. Others favor its authigenesis during pedogenic processes or its inheritance from the parent material. This review provides a critical synthesis on the origin of palygorskite in the semi-arid-tropical (SAT) Vertisols and arid calcic soils of the Thar Desert of India. It also highlights the specific genetic pathway for the presence of palygorskite in the soils. The ubiquitous association of smectite with palygorskite is inadequate to explain the formation at the expense of smectite, because at pH 8.2 and above the smectite structure is subjected to dissolution to create soluble Si and Al, and the recrystallization of the soluble Si and Al to form palygorskite may not be possible in the Vertisols of the Indian SAT environment. Thus, mildly to moderate alkaline pedochemcial environments of the SAT Vertisols do not favor authigenic precipitation of the palygorskite in such soils. This review shows that the presence of palygorskite in the SAT Vertisols is due to its inheritance from the exhumed inter-trappean beds, infra-trappean beds, and bole beds. This view on the genesis of the palygorskite is also justified by its presence in weakly developed calcic soils of the Thar Desert as detrital flux from the adjoining marine sedimentary rocks.