The State of Bhopal was founded by an Afghan adventurer, Dost Mohammad Khan. He attacked Jagdishpur in 1715, named it Islamnagar and built a fort there. He was awarded the title of "Khan" and "Diler-i-Jung" by Farrukh Siyar, the Emperor of Delhi. His son Yar Mohammad Khan added more territory to his kingdom. Nawab Faiz Mohammad Khan conquered Raisen fort.
During the reign of Nazar Mohammad Khan a Treaty was signed with the British in 1818 and a Political Agent of the British Government was appointed. Bhopal State was ruled by four female rulers, Kudsia Begum (1819-1837), Sikandar Jehan Begum (1844-1868), Shah Jehan Begum (1868-1901) and Sultan Jehan Begum (1901-1926). The insignia of the Order of G.C.S.I. (Grand Commander of the Most Exalted Order of the Star of India) was conferred on Shah Jehan Begum in 1872. She ceded land for the Bhopal-Indore railway line in 1891, built a number of elegant buildings such as the Tajmahal, Benazir Manzil, Noor Mahal and Taj-ul-Masajid. She died in 1901 and was succeeded by her daughter Sultan Jehan Begum. She built Sadar Manzil, Ahmedabad Palace, Minto Hall and the Edward Museum. She abdicated in favour of her youngest son Nawab Hamidullah Khan in 1926. He was Chancellor of the Chamber of Princes and participated in the Round Table Conference held at London in 1930.
After Independence Nawab Hamidullah Khan signed an agreement with Government of India on 30 April, 1949 and the state was taken over by the Union Government as Chief Commissioner's Province on 1st June, 1949. Consequent upon the Re-organisation of states in 1956, the new state of Madhya Pradesh came into existence on 1st of November, 1956, and Bhopal became its capital.