In Indian Mythology, most of the Queer stories were very much evident in Mahabharatha. Not just Shikhandi, but there are episodes where Arjuna also goes through sex-change.
In the 14 years of exile in forest after losing to the Kauravas, the Pandavas took cover in the Indra province. Arjuna declined to marry the princess of Indra. She cursed Arjuna that he will neither live as a man or woman and will only live as a eunuch all his life teaching dance and music. But knowing about the Pandavas and Draupadi’s holy grail to win over the Hastinapur kingdom, the princess cursed that Arjuna will spend one year as a eunuch.
On the 14th year of the exile, Arjuna disguised himself as Brihanalla at the Virata kingdom. He taught dance to princess Uthara who later married Arjuna’ son Abhimanyu. When Arjuna was a eunuch, no one was able to find out that Brihanalla was the spiritual son of Indra – the powerful man on Earth.
It was not the only time that Arjuna did a sex-change. An episode in the Padma Purana – which is the book on Krishna’s knowledge and power and his life with Radha, a chapter talks about the friendship of Arjuna and Krishna. When Arjuna learnt about the gopis of Krishna – who are always around him, Krishna tells Arjuna about the 108 gopikas in Vrindavan and how they are perceived as goddesses.
When Arjuna learnt about the gopis unconditional love for Krishna, he turned into a woman and lived as Arjuni. Krishna’s unparallel love for the gopis who are referred as Krishna’s sakhis made Arjuna realize that love has no gender and that made him live as gopika Arjuni.