[2][3] According to a legend, a Jain merchant named Vardhaman Sheth asked Pir Hazrat Shah Murad Bukhari to pray for the safety of his sinking cargo ship.

The legend also highlights a local custom among seafarers and merchants of visiting the pir's shrine before going to sea.

[7] In 1755, Mundra was held and defended by Godji II when he was in revolt against his father Rao Lakhpatji.

He imposed charges on merchants entering and exiting the town to raise funds on the advice of Punja, his adviser.

[7] During Rao Rayadhan III's reign in 1778, he was forced to retire and the administration of the state was taken over by Bar Bhayat ni Jamat (the council of twelve), a group of chiefs.

[4] The town was the base of many mercantile communities including Kutchi Oswal Vanias and Bhatias in the 18th to early 20th century.

The importance of the town declined with the rise of Bombay (now Mumbai) and the construction of the Rajputana railway in the 1870s.

During the January 2001 Gujarat earthquake, Mundra was the only place in the district of Kutch which was not affected by the devastation.

Following the earthquake, tax incentives were granted for setting up new industries in this district which led to the rapid industrialisation of this region.

[10][11] On 29 August 2020, Mundra and Baroi Gram Panchayats were merged to form the Mundra-Baroi Municipality.

All other major Hindu and Muslim religious festivals are celebrated in the town including Diwali, Holi, Uttarayan, Muharram and Eids.

The old harbour is virtually unusable today, and only small local fishing crafts navigate its silted waterways up the river.

The main source of income for the local people is agriculture, horticulture and wage labour.

Mundra has a Date Palm Research Station operated by Sardarkrushinagar Dantiwada Agricultural University converted from a seed farm in 1969.