Nagar, established in the 14th century, operated as an autonomous principality until the British exerted control over the region during the Hunza–Nagar Campaign (1889–1893).

The rulers of Nagar were considered to be among the most loyal vassals of the Maharajas of Jammu and Kashmir, sending annual tributes to their Durbars until 1947.

[citation needed] In 1968, Syed Yahya Shah, the first educated politician of the valley, demanded civil rights from the Mir of Nagar.

In 1972, the Pakistan People's Party government (under Prime Minister Zulfiqar Ali Bhutto) forced the Mir of Nagar to abdicate.

The Karakoram Highway crosses Nagar, connecting Pakistan with China via the Khunjerab Pass.