It belonged to the Orissa States Agency and its capital was at Raj Nilgiri,[1] which later became the modern town of Nilagiri.

[4] According to local traditions, Nilgiri state was founded by a mythical ancestor coming from the Chhota Nagpur region of the Nagabanshi dynasty.

In 1525 Raja Narayan Singh distinguished himself by his service to Emperor Akbar in the battles against Afghan invaders.

Raja Krishnachandra Mardraj Harichandan, who ruled Nilgiri in 1850s, adopted the son of the Bhanj king of Mayurbhanj, Krishna Chandra Bhanj Deo, who succeeded as the ruler of Nilgiri as Raja Shyamchandra Mardraj Harichandan in 1893.

During the time of the political integration of India freedom fighters such as Balaram Raj, Shyamsundar Parida, Kailashchandra Mohanty, Banamali Das, Baishnab Patnaik and Nanda Kishore Patnaik forced the last Raja of Nilgiri , Kishor Chandra, to surrender to the newly formed Indian National Government.