In the 6th Century A.D. Chinese traveller Huien Tsang passed through Poonch. He wrote that Poonch was famous for graphics, fine tea (Musloom) and good horses. Around 850 A.D., Poonch became a sovereign state when Mr. Nar, a horse trader declared himself Raja of Poonch . In 1596 A.D. Mughal King Jehangir nominated Siraj-ud-din of village Kahuta as Raja of Poonch . In 1798 A.D. a Gujjar leader Rooh-ullah-Sangu became the ruler of this area.

From 1819 A.D. to 1850 A.D. Poonch remained a part of Khalsa Darbar , Lahore. In 1850 A.D. Dogra Raja Moti Singh laid foundation of Dogra Raj in Poonch .  On the death of Raja Jagat Dev Singh in 1940,  Sardar Abdul Qayoom Khan became administrator of Poonch under the orders of Kashmir Government. In 1947 two and half  tehsils of Poonch principality went under the illegal occupation of Pakistan, while the rest became a constituent of Rajouri Poonch district. In 1967 for administrative convenience this district was further divided into two parts , viz district Rajouri and district Poonch.