According to Han historian, Sima Qian, it was established in 279 BC by Zhuang Qiao, a general of Chu during the Warring States period.

When the Chu homeland was invaded by the Qin, Zhuang Qiao decided to stay in Yunnan and established the Dian kingdom.

However they learned that further west there was a kingdom called Dianyue where the people rode elephants and traded with the merchants from Shu in secret.

Dian was a major business center, linked by networks of prosperous trading routes to modern South and Southeast Asia.

These incentives motivated Emperor Wu to extend the Han dynasty's control further southwest to secure access to products such as silk and bamboo, iron, tin, and silver.

[5][6] A military campaign dispatched by Emperor Wu of Han in 109 BC invaded the region and annexed the Dian Kingdom.

[19] Emperor Huan embarked on a sinicization campaign during his reign between 146 and 168 that introduced Han Chinese ethics and culture to the Dian tribes.