[citation needed] Kurwai State was founded in 1713 by Mohammed Diler Khan, an Afghan soldier in the Mughal army.

The ruling house of Kurwai was founded by Muhammad Diler Khan, an Afghan Pashtun from the Orakzai tribe as a feudal state.

After recovering, Izzat Khan joined enemy camp, and received high commands, titles and territories from Ahmad Shah Abdali.

[citation needed] When Sarwar Ali Khan was young, the state was ruled by a regency council headed by Umar un-nisa, who came to be known as "Sarkar Amma" (Mother Governor).

She established several institutions for welfare of the citizens, including a rural bank that provided interest-free loans.

Abida Sultan gave up her right to the throne of Bhopal and opted for the Muslim nation Pakistan in 1950, eventually entering that country's Foreign service.

During Sarwar Ali Khan's reign, Kurwai saw development of modern infrastructure including roads, telephone network, sanitary facilities, bridges, schools, courts, police station, civil hospital government offices, a power station and a Legislative Assembly.

A friend of the Harijan leader Jagjeevan Ram, he encouraged the emancipation of the lower castes, and also campaigned against the dowry system and forced marriage.

Sawar Ali's daughter Kaiser Zaman studied English at Somerville College, Oxford University.