It was supposedly a stronghold of the Chauhan Dynasty in the early medieval period; according to their dynastic traditions, the place was founded by a ruler named Chandrasen.

The Gahadavala ruler Jayachandra was killed in the battle, which helped "lay the foundation" for Muhammad of Ghor's subsequent conquest of much of northern India.

[3]: 244 According to Bhadauria dynastic traditions, the presumed Chauhan local rulers of Chandwar stayed in power until 1246, when they were finally conquered.

In 1452, Chandwar was the site of a major battle between the Delhi and Jaunpur Sultanates, which led to a three-year truce between the two empires.

[5]: 183 Chandwar seems to have remained the seat of a pargana until administrative reforms in the mid-1700s under Suraj Mal, the Jat maharaja of Bharatpur.

The old fort overlooking the Yamuna was once the political centre of the town, and there are also various ruined temples, mosques, and tombs.

[7]: 192–3 The 1961 census recorded Chandwar as comprising nine hamlets, with a total population of 3,393 people (1,760 male and 1,633 female), in 605 households and 418 physical houses.

[8]: xciv As of 2011, Chandwar did not have a bank or agricultural credit society, and it did not host a weekly haat or permanent market.