"We've been joking about it (the dab) all week," Khawaja said.
"Renners [Matt Renshaw] and a few of the other lads have been talking about it so when I got to fifty I thought 'just dab'."
However the light-hearted celebration received a mixed reaction on social media, with many cricket fans calling the dance move 'disrespectful' to Australia's touring opponents.
"If I get a hundred then it'll be a super dab but I guess we'll have to wait for that," Khawaga joked what quizzed on the manoeuvre after the match.
However the move could come at a price for the 30-year-old after Josh Hazlewood joked the team's internal fines committee would be investigating Khawaja's cheeky celebration.
"I'm part of the Fines Committee and we're not allowed to fine people for on-field things, but that might be up for discussion next meeting," Hazlewood said.
"It's all good fun. He's just trying to do something different compared to everyone else. It's pretty funny."
Former Australia cricketer, Ian Chappell, admitted he had no idea what the dance move was and why Khawaja had chose to use it to mark his half century.
Khawaja's former New South Wales teammate Moises Henriques also produced an on-the-field dab when he scored a century against Tasmania in a Sheffield Shield match last year.
Pakistan ended day three at the SCG on 2271/8, some way behind Australia's first innings score of 538/8 declared.
The visitors hopes of salvaging a result from the final Test of the series were left hanging with Younus Khan, who went to stumps unbeaten on 136 after registering his 34th Test century and his first in Australia.
"Younus has been a great servant for Pakistan cricket and scoring a hundred here as well. Now he's scored a hundred in each Test-playing country, so it's a big achievement," said Khan's Pakistan teammate, Azhar Ali.
"It's probably his last tour to Australia so it's a really happy moment for each and everyone of us."
