The area was inhabited at the time of Alexander but the present city of Jhang is said to have been founded in the twelwth century by syed jalal-ud-din bukhari (in 1134 AD according to some sources).Its first inhabitants were sials who were followers ( mureed) of syed jalal-ud-din bukhari.It was then destroyed by the river and re-founded during the reign of Aurangzeb by syed Mehboob alam ( shah jewna) who asked his (mureeds) followers to settle again in that area in year1402 AD .Under Mughal rule, the city flourished and was notable for commerce and trade.
During British Rule, the towns of Jhang and Maghiana, lying two miles apart, became a joint municipality, then known as Jhang-Maghiana.
Jhang-Maghiana became a municipality in 1867. The income during the ten years ending 1902-3 averaged Rs.46,800 and the expenditure Rs. 44,200, in 1903-4 the income was Rs. 49,700 mainly derived from octroi. Maghiana lies on the edge of the highlands, overlooking the alluvial valley of the Chenab, while the older town of Jhang occupies the lowlands at its foot.
Commerce declined in Jhang, which was no longer considered a place of importance. Maghiana, however, had a considerable trade in grain and country cloth, and manufactured leather, soap, locks and other brass-work. Maghiana also contained a civil hospital, whilst Jhang had a high school and a dispensary.
The population in 1901, according to the 1901 census of India, was 24,381 of whom 12,189 were Hindus and 11,684 were Muslims.