The district has a rich culture in history. In Jain literature there is a reference to Lord Mahavir`s visit to a place called "Lore-a-Yadaga." This is the term, which also appears in Mundari literature. This term in Mundari language means river of tears. In `Aain-e-Akbari` there is reference to the name of this place.

The ruins of forts and temples of Korambe, Bhandra, and Khukhra-bhakso, show to common people that the district has a cultural past, which were very rich. According to local historians the district Lohardaga was once a major centre for smelting iron. This can be seen in the name also i.e. "Lohar" means iron monger, and "dagga" means centre.

Around 1765, the British entered this area of the country. The chief agent of the Governor General was the resident in Lohardaga in the year of 1833, when "South West Frontier Agency" was established. In 1842 the Principal Assistant to the "Agent" was relocated from Lohardaga to Ranchi. Though in 1843 a Deputy Commissioner was placed and Courts were established at Ranchi but the Commissioner continued to work from Lohardaga until 1899. In 1854 this South West Frontier Agency was abolished. Bihar government declared Lohardaga as a Sub Division in 1972 and as a district on 17th May 1983 .