Sultanpur Lodhi is one of the most ancient cities of India, estimated to have been established around the 1st century AD.

Cunningham, in his History of the Sikhs, says that Sultanpur was originally called Tamasvana and was very famous as a Buddhist settlement. Over the years it had become a picture of decay and neglect.

Sultanpur Lodhi was also the center point of the old trade route between Delhi and Lahore. It was a major trade center of north India at that time.

During Guru Nanak's stay in Sultanpur, Daulat Khan Lodhi was the nawab. Sultanpur soon earned a reputation as a rich and prosperous town. Many young and enterprising men came there to make their fortune and then stayed on, contributing further to the town's prosperity.

After Nankana Sahib (now in Pakistan), Sultanpur Lodhi is perhaps the most related to life of the first Guru, Guru Nanak Sahib Ji. In 1475 AD the elder sister of Guru Ji, Bibi Nanki Ji was married to Jai Ram of Sultanpur Lodhi.