In 1892 the state covered an area of 401 square kilometres (155 sq mi) forming an enclave surrounded by the British territory of the Nerbudda Division of the Central Provinces.

According to legend Makrai princely state was established in 1663 century by Gond Raja Karkat Rai who hailed from a family that owned land in Harda tehsil.

Power was restored to the native ruler in 1893 under the condition that he appoint a Diwan (Minister) duly approved by the British Head Commissioner.

The principality was incorporated into the state of Madhya Pradesh, which in turn was created from the territories under the former Central Provinces and Berar.

As of 2012, the titular Maharaja of Makrai is Raja Ajay Shah, born on 21 January 1956, married on 20 May 1986 and crowned on 21 December 1987.

Kuwar Sanjay Shah is MLA from Timarni, Madhya Pradesh, married to Shailja of Bardibas, Mahottari, Nepal.

Uma Shah is married to Dr Krishna Hamal of Pipal Bhanjyang, Udaypur district of Nepal, currently residing in Canberra, Australia, and they have two daughters (Natasha and Abhilasha).

Archana Shah is married to Naresh Thapa of Chandanpur, Sankhuwa Sabha district of Nepal, currently residing in Canberra, Australia, and they have one daughter (Asmita).