The documentary will be made by Zindagi Na Milegi Dobara director Zoya Akhtar, to mark 100 years of Bollywood, reports Mid Day.
A source said: "When Zoya was approached to make the documentary, she felt that the popular 'Sheila ki Jawaani' track from Tees Maar Khan was a perfect example to describe the story of the glamour-struck industry.
"The song, choreographed by Farah Khan, is an epitome of a quintessential Bollywood number with lots of latkas and jhatkas, and it established Ms Kaif as the hottest item girl in B-Town.
"Meanwhile, cashing in on the popularity of the song, a B-grade film too was made on the same title."
The source further revealed: "The documentary tells the story of a boy who is a huge fan of the item number and dreams of meeting Sheila in reality. It talks about the success of this song in particular and people's fascination for Bollywood films and stars.
"The film will be shot in Mumbai. Zoya will take some of the stock footage of the song from her cousin Farah Khan and also shoot the song again if required."
Kaif confirmed the report saying: "Yes, I am part of the documentary."
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Watch Katrina Kaif's 'Sheila ki Jawaani' below: