The state was originally ruled by Sodha branch of the Parmar Rajputs which was founded in 1470s.

They came from Tharparkar and carved out an Independent state for themselves under the leadership of Lakhdhirji and settled in Thān and Chotila.

Stone Memorials at Muli commemorate the event when two communities fought over a partridge leading to the death of an estimated 200 persons.

The incident goes back to 1474,[3] when members of the Chabad community, who were tribal hunters shot a partridge, which was wounded and saved by a lady named Jombai who was the mother of Lakhdhirji, the then ruler of the Muli State.

The ensuring battle led to many deaths and stone memorials are still found in Muli.