It was elevated from sub divisional status to a district on 4 April 2001, vide Jharkhand Government Notification No 946 dated 04.04.2001.

It is surrounded by Ranchi, Lohardaga, Gumla, Palamu and Chatra district apart from Chhattisgarh state.

Since the district consisted mostly of forest tracts the territory seldom engaged the attention of invading armies, and the area remained outside the pale of influence of empires which were established in other parts of modern Bihar.

[citation needed] Inscriptions and other relics which have been found indicate a fairly developed civilization in spite of the jungles and comparative inaccessibility of the area.

Prior to the domination of Palamu by the Cheros, Rakshel Rajputs held sway over the district.

In 1538, Sher Shah Suri had sent one of his officers to control the turbulent chiefs and free the Grand Trunk Road from their clutches who used to exploit the travellers.

The Mughal influence extended to Palamu during the reign of Emperor Akbar when it was invaded by Raja Mansingh in 1574.

The non-payment of this mandatory tax by the Chero rulers of Palamu led to three successive attacks by the Mughals.

The army reached the fort of Palamu, defeated Pratap Rai and compelled him to pay a tax of ₹ 80,000.

As a last resort, Daud Khan, Governor of Bihar, left Patna with a strong force in 1660 and in spite of heavy drawbacks and difficult terrain, reached within 3 km of Palamu.

But actual fighting was warded off by the payment of one lakh of rupees in cash and in the shape of diamonds.

[3] Jharkhand State Mineral Development Corporation (JSMDC) also has a coal mining project at Sikni.

Once the seat of Chero kings, there are two historical forts, one of them from the 16th century, deep inside the forest.