Gujrat was founded by Raja Bachhan Pal Gurjar in 460 BC,

The establishment of Gujrat City was realised early in the 19th century after the British Empire
and in support of regional landlords (e.g., Daswandi Khan of Daswandi Pura).
In 997 CE, Sultan Mahmud Ghaznavi, took over the Ghaznavid dynasty empire established by
his father, Sultan Sebuktegin, 
 The Delhi Sultanate and later Mughal Empire ruled the region. 
Gujrat became a part of the Muslim Sultanate of Delhi when the Persian noble Sultan Shahab-
ud-Din Muhammad Ghauri conquered Punjab in 1185.
Gujrat slowly developed as medieval town and many Muslim Sufi missionaries converted the
local Gurjar population to Islam. During the Mughal period, Mughal royalty frequently travelled
through the district en route to Kashmir. When King Jahangir died while he was returning from
Kashmir, the news of his death was suppressed to avoid any chaos in the empire. His
abdominal organs were taken out and buried in Gujrat. To this day, an annual festival is held
commemorating this event, commonly known as the “Festival of Jahangir”.

Muslims faced severe restrictions during the Sikh rule. Between 1765–1846 Gujrat was
occupied by the Sikhs.

After the independence of Pakistan in 1947, the minority Hindus and Sikhs migrated to
India while the Muslim refugees from India settled in the Gujrat district. Muslims
refugees from East Punjab, Haryana, Jammu started arriving and crossed the border
into Pakistan; many were given land in Gujrat District to settle.

Shah Daula is a Sufi saint of the city and he met Sikh’s sixth Guru Har Gobind (1595–
1644) when he was passing though Gujrat. After the decline of the Mughal Empire, the
Sikh invaded and occupied Gujrat. The Muslims faced severe restrictions during the
Sikh rule. Between 1765–1846 Gujrat was occupied by the Sikhs.

Two main battles between British and Sikh armies were fought in this district: the Battle
of Chillianwala and the Battle of Gujrat. Only after winning the battle of Gujrat on 22
February 1849 did the British declare victory in Punjab.
After the independence of Pakistan in 1947, the minority Hindus and Sikhs migrated to
India while the Muslim refugees from India settled in the Gujrat district. Muslims
refugees from East Punjab, Haryana, Jammu started arriving and crossed the border
into Pakistan; many were given land in Gujrat District to settle.

There are many historical buildings and ruins in and around Gujrat. The Grand Trunk
Road, commonly abbreviated as G.T. Road, built by Emperor Sher Shah Suri, also
passes through Gujrat. The road still exists today, along with its period stone wall.
Historical buildings and ruins can be found in nearby towns throughout the area.