The Muli Princely State had an area of 133 square miles (340 km2) and contained nineteen villages in addition to Muli city. The Parmaras came to this area from Tharparkar District, Sindh, Pakistan. The Parmaras' Lakh Dirji named this Princely State after a milkmaid who used to deliver milk to Lakh Dirji.
The town is famous for the battle fought between the Chabhad and the Parmaras for a wounded partridge. Chabhhads 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.
- Pages 553 to 556 of the "Gazetteer of the Bombay Presidency, Volume VIII, Kathiawar", Government Central Press, Bombay, 1884, have a thorough history of Muli. This book is available as a free download from Google Books.