[7] Under the Pala Empire, Odantapuri, a major Buddhist monastic university was built at the site of Bihar Sharif.

[11][12] The name Bihar is derived from vihar or vihara, meaning Buddhist monastery, a reference to the ancient Odantapuri University established near the city in the 7th century CE by Pala king Gopala I.

Odantapuri is considered to have been the second-oldest of India's Mahaviharas, and it is believed to have been located on or at the foot of Bari Pahari (English: Big Hill), or in the present-day Gadh Par locality of Bihar Sharif.

As a result, while Nalanda was struggling for survival around 11th century CE, Odantapuri had a rival institution thriving under the royal patronage of Palas.

[16] In 1193, during the time of Ikhtiyar ad-Din Muhammad bin Bakhtiyar Khilji's conquest of Bihar, he came to conquer eastern parts of India and destroyed Nalanda University.

In Koshak, Nalanda, he appointed Qazi Syed Ibrahim Danishmand as the Qazi-ul-Quzat of Bihar making him incharge of enforcing Sharia law in the region.

A few years after Khilji's departure, local Bundela Rajput regained control of the city from its Muslim rulers.

Delhi Sultan Muhammad bin Tughluq (r.1324–1351 CE) then sent Syed Ibrahim Mallick with an army to conquer the Magadha region.

The British period brought about changes in administration, infrastructure, and governance in Bihar Sharif and the surrounding region.

[21] The final model of the house of worship was unveiled in April 2020[24] and its foundation has been laid on 21 February 2021[25] and is expected to get completed by 2023.

Agricultural trade and Education are the two main economic activities of Bihar Sharif, with crops including cauliflower, potato, mustard seed and other vegetables, which are exported to neighbouring states.

Tourism to nearby sites like Nalanda, Rajgir and Pawapuri also boosts the city's economy, as do footwear and garments manufactured by household industries.

[27] As of 1981,[update] the city had a major beedi cigarette industry which employed 15,000 people, mainly Muslims and some lower-caste Hindus.

During the course of his amateur excavations, he collected many sculptures and architectural fragments, with which he established a museum at the Collector's Bungalow at Bihar Sharif in 1871–1872.

The pillar was removed and set up on a brick pedestal opposite the Bihar Court House, and then later transferred to the Patna Museum.

Mahavira, often regarded as the founder of Jainism, is said to have attained Nirvana at the nearby town of Pawapuri, where the famous Jal Mandir is situated.

[32] The shrine of the Sufi Saint Sheikh Makhdoom Sharfuddin Ahmed Yahya Maneri, is located near the ruins of Odantapuri.

He is credited with converting many Hindus in the districts of Patna, Bihar Sharif, Gaya, Jehanabad, Arwal, Nawada, Jamui and Sheikhpura, and many Muslims celebrate Urs at the shrine each year in the month of Shawwal on the Hijri calendar.

The mausoleum of Syed Ibrahim Mallick Baya is presently located on the top of the hill known as Hiranya Parvata.

Badi Pahadi, also known as Hiranya Parvat, has a large park, a temple and the mausoleum of Syed Ibrahim Mallick Baya located on it.

A large tank said to be constructed by Queen Moora Devi, mother of the Mauryan Emperor Chandragupta Maurya.

The city is connected by road to major cities like Patna, Rajgir, Nalanda, Nawada, Mehsi, Harnaut, Jamshedpur, Ranchi, Dhanbad, Bokaro, Koderma, Kolkata, Gaya, Hazaribag, Barhi, Jehanabad, Bakhtiyarpur, Barh, Mokama, Munger, Purnea and Ramgarh.

[33] Bihar Sharif Junction is on the Bakhtiyarpur-Tilaiya line, part of the national broad gauge network.

[34] Director Prakash Jha's National Award-winning documentary film Faces after Storms (1981) was based on the incident of communal riots that took place in Bihar Sharif in May 1981.