A Muslim majority state established by Sheikh Sadruddin (a member of the Sherwani tribe) from Afghanistan and ruled by his descendants. Travelling from Afghanistan towards India, Sheikh Sadruddin eventually settled down in the land which is today known as Malerkotla. Here he began worshipping God. There were no inhabitants in this region except a tiny village nearby. Close to his place of worship lived a woman named Mali. She became a disciple and regularly attended to him. Thus, when Sheikh Sadruddin laid the foundation for the district, it was named after her, Maler.

Sheikh Sadruddin passed away in 932 Hijri. During the reign of Bazid Khan, the fifth or sixth descendant down the line of Sheikh Sadruddin, a second district Kotla was founded. He later joined the two districts together to extend his dominion, creating Malerkotla.