[1][2][3][4][5][6] The present Dhar dynasty was founded in 1729 by Udaji Rao Pawar, a distinguished Maratha general who received the territory as a grant from the Chhatrapati.

[7] During the Pindhari raids, the state's territory was whittled away, until it was restored in size on 10 January 1819, when it signed a Subsidiary alliance agreement with the British East India Company and became a major Princely state, enjoying indirect rule under British protectorate.

[citation needed] The Dhar State Darbar (Court) was composed of Sardars, Jagirdars, Istamuradars, Mankaris, Thakurs and Bhumias.

In 1860, it was restored to Raja Anand Rao III Pawar, then a minor, with the exception of the detached district of Bairusia which was granted to the Begum of Bhopal.

The second definitive issue bore the name DHAR STATE in Latin script; a total of 8 stamps.