After the implementation of Punjab Local Government Ordinance 2001, it was given the status of Tehsil Municipal Administration (TMA).

[6][1] In the past, influential people of the region would build a Sarai, which would be caravan stations and rest houses for travelers.

[1] The 'Sarai' (rest area) at Sarai Alamgir was founded by the Mughal emperor Aurangzeb because of its strategic location on the Grand Trunk Road and the Jhelum River, and its proximity to Kashmir.

Sarai Alamgir gained prominence when the King George V Royal Indian Military School was established on 3 March 1922; it was one of four such cadet schools in British India to benefit the sons of members of the Royal Indian Army.

Sarai Alamgir is a historic crossroads between the ancient Grand Trunk Road and the Jhelum River.

[1] Nearby are the sites of the Battle of the Hydaspes, the historic and ancient Alexandrian city of Bukephala (or Bucephala) and the huge Rohtas Fort.

[6][8] Sarai Alamgir city has these cities in its surrounding areas: Jhelum Kharian Mirpur, Azad Kashmir Mandi Bahauddin Punjab The nearest international airports are at Islamabad and Sialkot, about 127 km (79 mi) and 90 km (56 mi) away, respectively.