In the beginning of 18th-century, Bhopal State was converted into an Islamic principality,[8][9] in the invasion of the Afghan Mughal noble Dost Muhammad Khan.

The state was founded in 1707 by Dost Mohammad Khan, a Pashtun soldier in the Mughal army, who became a mercenary after the Emperor Aurangzeb's death and annexed several territories to his fiefdom.

During this period, the state was noteworthy for its immense contributions to the development of Islamic religious activities, cultural reform and educational efforts which caused a growing appreciation for its rulers in Indian political circles.

[14] After the death of the emperor Aurangzeb, Khan started providing mercenary services to several local chieftains in the politically unstable Malwa region.

Later, he usurped the Rajput principality of Mangalgarh and the Gond kingdom of Rani Kamlapati, after the death of their female rulers to whom he had been providing mercenary services.

[17] Dost Mohammad Khan and his Pakhtun Orakzai dynasty brought Islamic influence to the culture and architecture in the foundation of Bhopal.

Aside from the city of Bhopal, which was his capital, Dost Mohammad Khan also renovated the nearby fort of Jagdishpur and renamed it Islamnagar.

[5] Faiz Muhammad Khan was a religious recluse, and the state was effectively ruled by his influential stepmother Mamola Bai.

In 1817, when the Third Anglo-Maratha War broke out, a treaty of dependence was signed between the British Government of India and the Nawab of Bhopal.

Sultan Shah Jahan Begum was the last women ruler, who after 25 years of rule, abdicated in favour of her son, Hamidullah Khan.

During this period, Bhopal state became a major hub of religious leaders and activists of the so-called Indian "Wahhabi" movement (the followers of Sayyid Ahmad Shahid) such as Munshi Jamal al-Din, Siddiq Hasan Khan, Abdul Jabbar, Abdul Rahman and Ali Karim.

Siddiq Hasan Khan would eventually rise to position of virtual ruler of the state after his marriage to the widowed Shah Jahan Begum in 1870; resulting in the ascendancy of the Ahl-i Hadith movement.

Various Islamic educational and political reforms were initiated by Khan and the doctrines of the Ahl-i Hadith became the state religion under his reign.

She built the Jama Masjid (mosque) and her beautiful palace the 'Gohar Mahal'(also called Nazar Bagh) in Bhopal.

In the beginning of July 1857, Sikandar Begum was informed by Bakhshi Murawwat Mohammed Khan Nasrat Jang, that the rebel forces from neighbouring areas were marching towards Bhopal.

They also acknowledged Bahadur Shah Zafar as the emperor of India, and sent offerings to Delhi in form of horses and cash.

She required undertakings from the balahi and patel (chiefs) of every village, to report any violations to the concerned thana (police station).

Sikandar Begum also banned the circulation of any seditious notices either found lying on the road or stuck on the walls.

Maulvi Abdul Qayyum, the darogha of Fatehgarh fort distributed 500 copies of a pamphlet issued by the rebels of Cawnpore (now Kanpur).

She also published a pamphlet from Sikandari press, denying the charges of British interference in the religious affairs of Hindus and Muslims.

The Bhopal state had an army under the direct command of British officers, raised under the Anglo-Bhopal treaty of 1818, and consisting of 600 cavalry and 400 infantry.

Mama Qahhar Khan, the jamadar in the Vilayatian Regiment, and the sepoys under him refused to accept their pay, and revolted; they were punished by being discharged from the service.

The rebels looted the township, and killed Babu Subh Rao (the assistant Political Agent), Munshi Mukhdum Bakhsh and other British loyalists.

[22] On 6 August 1857, Risaldar Wali Shah and Kotha-Havaldar Mahavir declared a sepoy rebellion at Sehore cantonment near Bhopal.

They also ransacked and burned the bungalows of the British officers, and made attempts to plunder arms and ammunitions from the magazine.

During this period Bhopal had the highest[citation needed] GDP contribution towards the Indian economy mainly due to its superior craftsmanship and rich gold works.

[23] She had her own palace Sadar Manzil (the present headquarters of Bhopal Municipal Corporation); yet preferred the quiet and serene environment at the outskirts of the city.

Agitations against the Nawab broke out in December 1948, leading to the arrest of prominent leaders including Bhai Ratan Kumar Gupta and Shankar Dayal Sharma, the future president of India on 5 & 6 January 1949 respectively.

Sharma was sentenced to eight months imprisonment for violating restrictions on public meetings; some other satyagrahis like Ram charan Rai, Biharilal Ghatt, Thakur Lalsingh, Laxminarayan Sinhal were also arrested.

The eldest daughter of Nawab Hamidullah Khan and presumptive heiress, Abida Sultan, gave up her right to the throne and opted for Pakistan in 1950.