The players draft for the 2021 Kashmir Premier League took place on 3 July 2021 at the Tulip Banquet Hall in Islamabad. A total of 413 players signed up for the KPL. The players were divided into 7 categories: Icon, Overseas, Platinum, Diamond, Gold, Silver and Emerging. The emerging category was further divided into Overseas Kashmiris, Local Kashmiris and Non-Kashmiris. Each team chose 1 Icon player, 1 Overseas player, 1 Platinum player, 2 Diamond players, 2 Gold players, 3 Silver players and 5 Emerging players. The participants in the draft ceremony included Chairman of the Kashmir Committee Shehryar Afridi, Senator Faisal Javed, President of the KPL: Arif Malik and CEO of the KPL: Chaudhary Shahzad Akhtar.
Herschelle Gibbs was the first player to be picked in the draft. Shan Masood was the first non-foreign player to be picked in the draft. The icon players had already been signed prior to the draft.
The following is the summary of the teams.