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 North West Frontier Province (NWFP).
Madad Khan, the original Khan of Phulra, had two branches of offspring i.e a senior branch and a junior branch. After the State of Phulra was abolished, both these branches continue to be represented in the area. 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, Khan Muhammad Faridoon Khan, and his grandson Khanzada Ali Raza Khan.. They comprised the senior branch of the former Phulra family.
Of the junior branch, Madad Khan had two other surviving sons, Bahadar Khan (from a Tanoli woman) whose descendants are still settled in Mangal Doga, Mahal and Masand villages; and Arsala Khan  who was born from a Gujjar serving woman and whose descendants still live in Gojra village. They are all private citizens today.