Lunavada princely state lay in the political agency of Rewa Kantha, Bombay during the British-Raj. It was bounded on the north by the Rajputana State of Dungarpur, on east by Sunth and Kadana States of Rewa Kantha, on the south by the Godhra taluka of Panch Mahal district and on the west by Idar (Mahi Kantha) and Balasinor State (Rewa Kantha). Lunavada is today a part of Indian State of Gujarat.
The town was founded by Rana Bhim Singhji in 1434. About the beginning of the 19th century the town was a flourishing center for traffic between Malwa and Central Gujarat. Its artisans were remarkable for their skill and a brisk trade in arms and accouterments went on. The chief of this state descended from a Rajpur dynasty that ruled at Anhilvada Patan and his ancestors were said to have established themselves at Virpur in 1225.