The fort & town of JAISALMER was founded by Maharawal Jaisal in the year 1156 AD after having shifted his capital from Ludharva (18 Kms away from Jaisalmer) to a safer place. The ruling family of the erstwhile Jaisalmer State belongs to Bhati Clan of Yadu Rajputs of Chandrawasnshi (Lunar) race who claim descent from Lord Krishna,the defied hero who ruled at Dwarka. The historical origin of Bahttis can be inferred from the couplet which says that the Yadu Rajputs ruled and constructed Forts at Kashi,Mathura, Pragvad, Gajni,Bhatner,Digam,Dirwal,Lodurva and ninth in Jaisalmer. (Gajni is in Afganisthan and Dirawal is now in Pakistan).

The present district is largely composed of the former JAISALMER state, which was among the Rajputana States to go under British protection. The treaty between Maharawal Moolraj-II and the British government of 12th December 1818 guaranteed to the ruler and his posterity the principality of Jaisalmer. Under this treaty the ruler of the State was required to act in subordinate cooperation with the British Government. At the time of Afgan War in 1938-39 the then ruler of the state Maharawal Gaj singh made excellent fool-proof arrangements for transportation of British troops for which British Government felt grateful to the ruler for timely help and cooperation. In 1844, after the British annexed Sind, the Forts of Shahgarh and Ghotaru, which are formerly belonged to JAISALMER, were restored to the State. In 1949 when Jaisalmer was merged into the state of Rajasthan, there was no important change in the area of the state.On October 6,1949,the region was given the status of an independent district in Jodhpur division.