The Muli Princely State had an area of 133 square miles (340 km2) and contained twenty four villages including Muli city. The Parmar came to this area from Tharparkar District, Sindh, Pakistan. The Parmar' LakhaDhirji Maharaja named this Princely State after a milkmaid who used to deliver milk to LakhaDhirji. Parmar believes in god "Mandavrayji (Temple of Sun)" thus they have built the big temple of Mandavrayji at the heart of city.
The town is famous for the battle fought between the Chabhad and the Parmars for a wounded partridge. Chabhads were wanted possession of the partridge while Parmars were wanted to provide shelter to wounded partridge, then it was a big battle between Parmars and Chabhads, this war having historical importance because 140 Parmars got victory against 500 chabhads of Sayla The Parmars, while victorious, were sacked by an army from Sindh Province for providing shelter to some outcasts.
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