His short fiction has previously earned him the Folio Prize, a MacArthur "genius grant" and a spot on the shortlist for the National Book Award.
The 2017 victor will be announced on Tuesday 17 October in London's Guildhall.
Elmet is about a family living in the Yorkshire woods who come into conflict with a ruthless landowner, while History Of Wolves is a coming-of-age novel about a teenage girl growing up in a failing cult in Minnesota. Besides Hamid, others on the short-list that does not feature any Indian are Paul Auster, Emily Fridlund, Fiona Mozley, George Saunders and Ali Smith.
Scottish novelist Ali Smith makes the shortlist for the fourth time with her novel "Autumn".
American author George Saunders is favored to win the prestigious Man Booker Prize for fiction with his novel of the afterlife, "Lincoln in the Bardo", according to British bookmakers.
"Playful, sincere, unsettling, fierce: Here is a group of novels grown from tradition but also radical and contemporary", she added.
Hachette imprint JM Originals makes the shortlist for the first time with Fiona Mozley's Elmet, which was the first ever acquisition of assistant editor Becky Walsh.
Hamid has written four novels, Moth Smoke, The Reluctant Fundamentalist, How to Get Filthy Rich in Rising Asia, and Exit West, and a book of essays, Discontent and Its Civilizations.
The victor will be announced on Oct 17, and will receive £50,000 ($89,295).
The judging panel culled books by several big names from the 13-novel list, including Zadie Smith's "Swing Time", Colson Whitehead's "The Underground Railroad" and "The Ministry of Utmost Happiness" by previous Booker victor Arundhati Roy.
Roy, who won the literary award worth 50,000 pounds for her debut book "The God of Small Things" in 1997, had featured on the long-list for her latest novel, "The Ministry of Utmost Happiness".
First awarded in 1969, the victor of the Man Booker will receive £50,000, while the short-listed writers each receive £2,500 and a specially bound edition of their book.
So far, few surprises - but the shortlist announced Wednesday did showcase some fresh faces.
U.S. author Paul Beatty won in 2016 was for his novel "The Sellout".
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