The area between Daudnagar and Aurangabad assumed great strategic importance when Daud Khan, Aurangzeb's Subedar in Bihar, marched against the Raja of Palamu.

As a mark of victory against the Raja in the year 1664, Daud Khan founded the city of Daudnagar.

The Sarai, built by Daud Khan was possibly intended to serve as a stronghold, as it was well-fortified with a battlemented wall, two large gates and a surrounding moat.

It is situated 30 kilometres (19 mi) away from the district headquarter Aurangabad The Indrapuri Barrage canal also passes through the town.

The Nagar Parishad Daudnagar has been mandated to oversee the day to day administration of the town and provides various services to the residents including sanitation, sewage and drain, door to door municipal solid waste collection and disposal, potable water supply, street lights, roads etc.

The list of the Blocks is as follows: The 2.9km 4 lane Sone bridge which connects Daudnagar on the southern bank with Nasriganj on the northern bank of the Sone River and is located around 105km southwest of Patna was inaugurated on 16 February 2019, by the then District Magistrate cum Collector of Aurangabad district.

The Son bridge benefits the entire Buddhist circuit as the distance between Kushinagar and Bodhgaya is reduced by 65km providing an alternate route that currently passes through the congested roads of Patna and Gaya.

Some of the festivals celebrated by the people are Durga puja, Chhath, Diwali, Holi, jiutiya (Jivitputrika), Raksha Bandhan, Eid, Muharram, Eid ul Zuha Uurush, Sab e Barat, Christmas, Makar Sankranti, Vasant Panchami, and Teej .

Daudnagar is famous for its unique and grand celebration of the festival of Jiutiya (Jivitputrika) where women keep fast for the longevity of their son.

In census survey, a 'worker' is defined as a person who has a business or job or services as a cultivator or in some other capacity in labour activity.

Recently built 3km four-lane bridge on the Son river connecting it to Nasriganj reduces the distance between two different towns of Magadh and Shahabad regions of the state.