Originally, the locality was founded by a Hindu ruler named Raja Vairat and was originally named Raipur but it was destroyed during the Islamic invasions of the Indian subcontinent. A later, re-built township on the site of the first settlement was founded during the rule by Rai Bhoi, a Rajput of Bhatti stock whose Hindu ancestor had converted to Islam due to the influence of Sufism, and thus was known as Rai-Bhoi-Di-Talwandi. His great-grand son Rai Bular Bhatti, renamed it as ‘Nankana Sahib’ after the birth of Guru Nanak. After recognition Guru Nanak a holy man he donated 750 square land to Guru Nanak. The Gurdwara Nankana Sahib, originally constructed by Sikhs during the Mughal era in around 1600 CE was renovated in 1819 by Maharaja Ranjit Singh.