Lohardaga's history dates way back to age of Lord Mahavira. Jain literature refers to Lord Mahavir's visit to a place called "Lore-a-Yadaga," a term that also appears in Mundari literature. lore-a-Ydaga' in Mundari means river of tears. There is reference to Kismate Lohardaga in 'Aain-e-Akbari' as well.

The ruins of forts and temples of Korambe, Bhandra, and Khukhra-bhakso, are mute testimony to its rich cultural past. Local historians say that Lohardaga was once a major centre for smelting iron ("Lohar" means iron monger, "dagga" means centre).

Around 1765, the British entered this area. In 1833, when 'South West Frontier Agency" was established, the chief agent of the Governor General was resident in Lohardaga. In 1842 the Principal Assistant to the "Agent" was relocated from Lohardaga to Ranchi (then known as Kishunpur). In 1843 a Deputy Commissioner was placed and Courts were established at Ranchi but the Commissioner continued to work from Lohardaga until 1899 despite the fact that in 1854 the South West Frontier Agency was abolished. Bihar government notified Lohardaga as a Sub Division in 1972 and as a district on 17ltl May 1983.

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