The City of Mandawa was made a thikana in the mid of 18th century by the Bhojraj Ji Kasubsub clan of Shekhawat Rajputs. About the origin of this town there have been earlier references to Mandu Jat as founder of the Mandawa village. He first established a dhani (hamlet) and dug a well here, which was completed on savan badi 5 samvat 1797 (1740 AD) (source – Shekhawati Bodh, Mandawa special issue, July 2005). Initially this place was known as 'Mandu ki dhani', 'Mandu ka bas' or 'Manduwas' which changed to 'Manduwa', 'Mandwa' and finally 'Mandawa'.
A remote feudal principality in the centre of the Shekhawati region, Mandawa was a trading outpost for the ancient caravan routes that stopped here from China and the Middle East. Thakur Nawal Singh, the Rajput ruler of Nawalgarh and Mandawa, built a fort in 1755 to protect this outpost. The township that grew around the fort soon attracted a large community of traders, who settled here.