Mr Khan's father drove the number 44 bus for 20 years
Muslim Labour MP Sadiq Khan has been promoted to minister of state for transport in the government reshuffle.
He will attend cabinet for transport policy discussions and be the lead transport speaker in the Commons. He will also become a Privy Counsellor.
He is the most senior Muslim politician in the country and the first Muslim to join the Privy Council or attend Cabinet, his website said.
His father was a bus driver and he grew up on a council estate in London.
In 2008 an inquiry found Mr Khan was bugged on two visits to see a constituent at a jail in Milton Keynes.
The report, by chief surveillance commissioner Sir Christopher Rose, confirmed that Mr Khan was secretly recorded when he met terror suspect Babar Ahmad on 21 May 2005 and 24 June 2006.
It also found that senior police officers who ordered the recording of the conversations did not know who Mr Khan was, but five junior officers did.
The then Home Secretary Jacqui Smith said at the time that Mr Khan was not a specific target of the surveillance operation and that there was no suggestion that he was under any suspicion.
Mr Khan made his name as a human rights lawyer before becoming an MP.
He was voted "newcomer of the year" in the 2005 Spectator parliamentary awards, within months of being elected to the south London seat of Tooting.
In 2007, he was appointed a government whip. Then, in October 2008, Mr Khan was promoted to under-secretary of state in the Department for Communities and Local Government.
He had special responsibility for community cohesion, the fire and rescue service, preventing violent extremism, the valuation and tribunal service and planning and local government.
In his new job Mr Khan will report to the new Secretary of State for Transport, Lord Adonis, who also gained his new post in the reshuffle.
Lord Adonis replaces Geoff Hoon, who resigned from the government on Friday.