This study explores potential prospects of rare earth elements (REEs) in Mansehra Granitic Complex (MGC), including Mansehra Granite, Hakale Granite, microgranites and leucogranites in northwest Pakistan, as these highly fractionated S-type peraluminous granites have potential for hosting deposits of REEs. Petrographic and geochemical constraints including concentration of mafic minerals, presence of microcline, development of zoning in feldspar, strong negative Eu anomaly, negative Ba, Sr, Nb, Ti and Zr anomalies, and positive Rb and Cs anomaly advocates fractionation of MGC. Similarly, enriched Rb and Ba relative to Sr, high K2O and low CaO, trace element ratios of Rb/Sr, Rb/Ba, K/Ba, Nb/Ta and Zr/Hf, and strongly peraluminous nature with A/CNK > 1.1 are highly indicative of the differentiated nature of the studied granites. Despite of positive response towards fractionation constraints, MGC is overall barren in terms of REE and strategic metals mineralization. The elemental concentrations and trace element ratios of MGC—upon comparison with the recommended values given by different researchers for discrimination between barren and mineralized granites—also fail to prove ore-hosting potential of MGC. The composition of parent magma plays primary role in development of ore deposits. The contradictory behavior of MGC on fractionation graphs and mineralization potential diagrams indicates that parent magma of MGC had low concentration of ore elements.