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 descendants of its last Khan, Abdul Latif Khan, remained in the area as private residents. The descendants of Khan Abdul Latif Khan were his sons, Khanzada Muhammad Faredun Khan, and his grandson Khanzada Ali Raza Khan.