Little is known about the early history of this District. The town of Gujrat itself is of modern origin, but occupies the site of an ancient city, the foundation of which is traditionally assigned to one Raja Bachan Pal, a Surajbansi Rajput, who emigrated from the lower Gangetic Doab, but of whom nothing more is known. The original name of the city is said to have been Udanagri, the everlasting or sweet-smelling city.
The principal source of the above mentioned history is the settlement report of General Cunningham and Captain H. Mackenzie. This settlement report is the principal work of reference on all matters connected with the District. General Cunningham has also stated that the restoration of the old city was done by Ali Khan, a Gujar. Captain Mackenzie, on the other hand, records the tradition that the city was rebuilt in Sambat 175 (A.D.118) by Rani Gujran, wife of Badr Sen, son of Raja Rasalu of Sialkot. Both accounts ultimately agree in the final restoration of the city in the time of Akbar.