During the Bangladesh Liberation War of 1971, a brawl emerged between the two factions in Bandaikhara on 19 September.

Its status was upgraded to upazila (sub-district) in August 1983 as part of the President of Bangladesh Hussain Muhammad Ershad's decentralisation programme.

Atrai had a literacy rate (age 7 and over) of 45.38%, compared to the national average of 51.8%, and a sex ratio of 1010 females per 1000 males.

Atrai Upazila is divided into eight union parishads: Ashanganj, Bhonpara, Bisha, Hatkalupara, Kalikapur, Maniari, Panchupur, and Sahagola.

Many of the mosques are notable tourist attractions in Atrai due to their antiquity or architectural style.