The principality was founded in 1437 by Anand Deo, a Rajput of the Rathore, starting the Deo/Singh dynasty. The last ruler of Ali Rajpur was Surendra Singh, who subsequently served as the Ambassador of India to Spain in the 1980s. After Indian independence in 1947, Alirajpur acceded to the Union of India, and the principality was incorporated into the new state of Madhya Bharat, which subsequently became Madhya Pradesh state on November 1, 1956.
The state flag consisted of 12 red and white horizontal stripes. The Raja had a personal flag with five stripes of different colors.