There are many popular theories of Bhopal origin. One of the most popular folklore was that Bhopal was established by king Bhoja of Paramara. And he chose Dhar to be his capital. However, there was no archaeological evidence such as coins, inscription, historical texts or monuments to support this popular folklore.
But, we do have Bhojeshwar Temple which is located twenty four kilometers away from Bhopal. Another theory says that the town was named after king Bhupala.
As per historical evidence, in the early 18th century Bhopal was a tiny village of Gond kingdom. Later, Dost Mohammad Khan received Bhopal from God Queen Kamlapati as a payment for his mercenary service. Later, after the death of queen he usurped the territory of Bhopal. It fell under a subsidiary alliance with the British from 1818 to 1947 and from 1947 to 1949, it remained an independent state.
Islamnagar city was established as the first capital of Bhopal Princely State. Later, the capital was shifted to Bhopal. Dost Mohammad Khan founded Bhopal State in 1707. Soon it came under the suzerainty of Nizams of Hyderabad from 1723.
In 1737, Marathas defeated Mughals and Nawabs of Bhopal allies in the Battle of Bhopal. Hence, Bhopal was made to pay tribute to Marathas. Only after the third Anglo-Maratha war, when Marathas were defeated by the British in 1818, Bhopal became a princely state of British India. Bhopal princely state was the second largest state in British India. In 1949, this state got merged with Union of India.