The state was founded in 1828, when Mir Painda Khan, the ruler of Amb, granted the area of Phulra as a small principality to his brother, Madad Khan. Phulra was recognised as a princely state in 1919 and 1921, in the official gazette of the Indian Empire. In 1947, the last ruler of Phulra acceded to Pakistan, but the state was extinguished in 1950, becoming part of Khyber-Pakhtunkhwa.
After the State of Phulra was abolished, the descendents of its last Nawab, Abdul Latif Khan, remained in the area as private residents. The descendents of Nawab Abdul Latif Khan are his son, Nawabzada Muhammad Faredun Khan, and his grandson Nawabzada Ali Raza Khan.