The ancient Indian kingdom of Chedi had its capital at Suktimati, which is located in Sagar in contemporary times. The history of Sagar District before 1022 A.D. is generally unknown; after that, records are available and it has been an interesting location for the rules of the erstwhile times. Sagar was under the rule of Ahir Rajas and their capital was at Garhpehra. In 1660, Udenshah, founded the present town of Sagar.

After 1735, the city came under the rule of the Peshwas. In 1818, a large part of the Sagar district was ceded by Peshwa Baji Rao II to the British East India Company. Administratively, the position of Sagar and the neighbouring territories underwent frequent changes.

The Saugor territory was first placed under the superintendent of Political Affairs of Bundelkhand. Later, in 1820, this area, called the 'Saugor and Nerbudda Territories,' was placed under the administration of an agent to the governor general. The region fell under the North-Western Provinces following its constitution in 1835. In 1842 occurred the Bundela rising, the quelling of which demanded a more direct attention by the Governor-General. But order was restored in the following year, and the Saugor and Nerbudda Territories were again placed under the political control of an Agent to the Governor-General. The arrangement however, was not found to be satisfactory and these territories were once again restored to the North-Western Provinces in 1853. Thereafter in 1861 the Saugor and Nerbudda territories, along with the Nagpur state formed a Commissioner's Province called Central Provinces.