According to traditions, the state is alleged to have been founded by Santosh Pal who claimed numerous legendary origins, came across a dispute between various aboriginal tribes in the region and was eventually selected by the Sabara tribe to be the ruler of the region.

Most research into the origins of the dynasty points that the founders of the Pallhara State belonged to the head of the Sabara clans of the region which was later acquired mythical characteristics as evident from the traditional accounts of the tribal clans and the close relationship of the Sabara chiefs with the rituals of the dynasty.

The state emblem is the cobra, which also figures in the founding myths of dynasty and regional tribal traditions.

[2][3][4] Existing records start from 1778 CE with the death of chief Muni Pal which points to the ensuing succession politics and the feud with Keonjhar State under whose it was a feudatory.

[5] On 1 January 1948, the last ruler signed the instrument of accession to the Indian Union following independence and the region currently forms a part of Angul district.