The District takes it's name from Kapurthala town which is its headquarters and was formerly the capital of the princely state. The ruling Ahluwalia family of the erstwhile princely state of Kapurthala traces its origin to the Rajput House of Jaisalmer. The family derives its title of Ahluwalia from village Ahlu near Lahore ( now in Pakistan) founded by Sadhu Singh, an enterprising member of this family.

However, the real founder of the Family was Nawab Jassa Singh who took a leading part in the Sikh struggle against the Mughal governor in Punjab. In 1748, he killed the governor of Amritsar seizing a large portion of the District. He then extended his conquest to the Beas and defeated the governor of Jalndhar doab. His subsequent victorious march was halted in 1762. Ater the return of Ahmed shah to Kabul, the Sikhs chiefs under the leadership of Jassa Singh defeated Zain Khan in 1764. whom Ahmed Shah appointed as governor. He contributed most to consolidate the postion of sikhs before Maharaja Ranjit Singh came on the scene. Jassa Singh died in 1783. He had made Kapurthala his capital. His illustrious successor Fateh Singh was responsible for including the areas of Phagwara and Banga in his territory.

The last ruler of the family was Jagatjit singh. His contribution in the field od industry was particularly noteworthly and many instituions and industries installed in his time bear his name. During the post-independence period, Banga Subtehsil was transferred to Hoshiaarpur District and four Bastis, Basti Nau, Basti Sheikh, Basti Kotlaan and Kot Sadiq were trnsferred to jalndhar District in June, 1950.as a result of the merger of PEPSU with punjab in 1965. The district has been transferred to Jalndhar division for convenience of administration.

Kapurthala, the capital of the former Princely State of the same name, was in its day, known as a city of Places, Mosques, Temples, Gurudwara and gardens.The extent of the french influence in the architecture of main Places, and some of the other Buildings, its wide streets, the Indo-Saracenic influences in the other prominent buildings and the well co-ordinated aesthetic layout of most dwellings being set amidst a front of an acre of lawn and gardens, earned this small Principality the sobriquet of the " Paris of the Punjab".

The former Kapurthala State also had the unique distinction of being located adjacent to the historic township of Sultanpur Lodhi. The sanctity of this holy township, rivals that of Nankana sahib. It was at Sultanpur Lodhi that Guru nanak Dev Ji. the first Guru of the Sikh faith, spent 14 years of his life. The Guru attained enlightenment whilist bathing in the small rivulet, the bein, that flowed near the township. the Sikh " Mool Mantra" or " Sacred word or revelation", which to this day, forms the commencement of the Sikh daily Prayer or "Japuj" and features at the commencement of thesacred "Granth Sahib", was uttered by Guru Namank Dev Ji, under the Ber ( Zizyohus Jujuba) tree, which is still extabt in the precincts of the Gurudwara that bears this name, at sultanpur Lodhi. There can be no greater evocation to sikh psyche, than this sacred site.