Punial State was formerly a princely state (under the British it was a "Special Political District" of the Gilgit Agency and not a Princely State) in the northwest part of the Northern Areas which existed until 1974. The state bordered the Gilgit Agency to the south, the former princely state of Yasin to the west, Ishkoman to the north and Afghanistan (Wakhan Corridor) to the northwest. The state capital was the town of Sher Qila. The area of Punial now forms the above named tehsil of Ghizer District.
Punial was an independent principality for several centuries. The British gained control of the area and the neighbouring valleys by mid 19th century followed by a military engagement of severe intensity. The first Rah of Punial was Isa Bagdur, succeeded by his son Akbar Khan, who in 1913 was deposed by the British and replaced by his son, Anwar Khan, succeeded in turn by his son Jan Alam.
This area and other neighbouring states were never ruled directly by Kashmir.