The documented history of Jharsuguda is coded from the time when the present district of Jharsuguda was known as "Jharguda", which was simply a part of the kingdom of Sambalpur. The history of Jharsuguda is synonymous with the sovereignty of the Chauhan kings in Sambalpur, who came in power far back at 16th century, when Balaram Dev of Chauhan dynasty established the Kingdom of Sambalpur. The kingdom of Sambalpur was under the Chauhans for long and has witnessed several upheavals.

As the available historical records point out, that during the reign of Chhattrasai Dev the 7th King of this dynasty (1656-1688), Jharguda was a small settlement surrounded by dense forest infested with a man-eating tiger, ravaging the people of this area. Siva Singh, the grandson of Chhattrasai Dev, mightily killed the tiger and in recognition of his might the king Chhattrasai Dev awarded him the area and conferred him with the title `Bhrutti` or `Jageri`.

As the folklores runs, the kishans from the Jharkhand state actually established the kingdom of Jharsuguda with Jharkishan as the head of the tribe. The original village consisting of the settlement of 12 kishan families was named Jharguda. Siva Singha, because of having the royal kinship was given the power of 12 jaigirdars including 12 villages namely Jharsuguda, Badheimunda, Debadihi, Kumdapali, Kureibaga, Banjari, Dalki, Balijori, Beheramal, Ekatali, Buromal, & Sarbahal, which originally was the kingdom of the tribal head Jharkishan. Following the historical records of the Jharsuguda, the descendants of Siva Singha were at the helm of the administration un-interruptedly from 16th Century till the end of the 18th Century.

At the closing of the 18th century the, history of Jharsuguda was marked by the aggression & occupation of Sambalpur by the Marahattas Bhonsle. Since the Maratha occupation, Orissa was a part of their empire till the period, when the history of Orissa was vitiated with the British influence. In 1818, when the British occupied the Sambalpur State, Maharaja Sai was made the nominal king, but the British carried out the actual administration. When Maharaja Sai died in 1826, the British declared his widow Mohankumari as the ruler of the Sambalpur. Claiming himself to be the rightful heir of the throne of Sambalpur, thereby challenging the decision of the British, the zamindar of Jharsuguda, Govind Singh launched an armed rebellion against the British. Besides being supported by a number of native chiefs, quite a good number of Gond tribals joined the rebellion. The rebellion of Govind singh continued for a long period of 3 years and in a decisive battle in 1833 between the British and Govind Singh on the vast field adjoining the Jhadeswar, the British defeated Govind singh and sentenced him to life imprisonment. Another claimant to the throne of Sambalpur Surendra Sai, Jamindar of Khinda, when launched armed rebellion against the British was arrested on the charge of dacoity & manslaughter because of his armed attack on the Jamindar of Rampur. Thus the British come up in the political scenario of Sambalpur.

As the history of Jharsuguda depicts, the revolutionary activities in Sambalpur calmed down when the diplomatic British Government released the former zamindar Govind Singh from jail, with the prior condition that he will withdraw his claim from the throne of Sambalpur. However the British supremacy in Jharsuguda has brought about socio-economic genesis in the district. During 1884, the Bengal Nagpur Railway (BNR) was commissioned between Calcutta and Nagpur and a Railway Station was established at Jharsuguda. A post office and a police station were established at Jharsuguda in 1895. In 1905, Jharsuguda ceased to be a part of the Central province and merged with Orissa. The history of Jharsuguda demonstrates that the district appears to be a significant part of Orissa`s politics after being attached to the Orissa province. In 1882 with the enactment of the local self-government Act, a Sanitation committee was formed for Jharsuguda in 1884. In 1951, according to the Orissa Government Notification No.5124/21851, the Jharsuguda Union Board was replaced by Jharsuguda Municipality, which was comprised of 13 wards. On 5th November 1952, the then Mafidar of Sambalpur was elected as the first Chairman of Jharsuguda Municipality on 5th October 1952. Originally Jharsuguda survived as the Sardar sub division of Sambalpur till 1979 and the Sub-Division with its 5 component blocks namely Jharsuguda, Kolabira, Laikera, Kirmira and Lakhanpur became a district on 1.1.94 following the G.O.No.56413.