Phalodi is in the buffer zone of Thar Desert and often subject to extreme temperature conditions due to its arid climate.

In Vikram Samvat 1515, The rajput king Shri Siddhuji Kalla have founded Phalodi by grace of Shri Maa Latiyal with named as Phalvaridhika, which was later renamed as "Phalodi" at the request of Phala, the widowed daughter of Shri Sidhu Kalla, who gave a generous contribution in cash to build the fort of Phalodi.

Khichan is well known for the migratory bird "Kurjan" (crane) which is hardly 4 kilometres (2 mi) away from Phalodi.

The stone epigraphical inscriptions in the Kalyanji-Ka- Mandir indicate existence of a town called as Vijay Nagar Patan, which is now known as Phalodi.

The majority in rural areas of Phalodi are Sindhi Muslims and in city Pushkarna Brahman lived.

The town is well known for the large number of industries for the production of sodium salt and plaster of Paris.

The climate of Phalodi is generally hot and arid, but with a rainy season from late June to September (Köppen BWh).

Temperatures are extreme throughout the period from March to October, except when monsoonal rain produces thick clouds to lower it slightly.

In the months of April, May and June, high temperatures routinely exceed 40 degrees Celsius.

However, the city's generally low humidity rises and this adds to the normal discomfort from the heat.

Phalodi's airport is 25 km from the city and is under Air Force and inaccessible to the general public.