The Princely State of Banganapalle was amongst main states during the rule of the British Empire in India. During the early 19th century, the region was appointed as one of the princely states of India under the indirect rule of the British administration. The administration of the princely state was taken over twice by the British governor of the Madras Presidency. This was done due to financial mismanagement, for the first time from 1832 to 1848 and again later in the year 1905, for a few months. Banganapalle State covered a total area of 660 sq km and consisted of a total population of 32,264 in the year 1901. After the withdrawal of the British Governement and Indian Independence in 1947, the last ruler of the princely state of Banganapalle acceded the state to the newly formed Union of India. Banganapalle was included as a part of Kurnool district of the then Madras Presidency. Later in 1953, the northern districts of Madras State, including Kurnool District, formed the new Indian state of Andhra State.

History of Princely State of Banganapalle
Sultan Ismail Adil Shah of Bijapur occupied the fortress of Banganapalle from Raja Nanda Chakravathy in 1601. The Banganapalle fort and the neighbouring districts came under the direct control of Siddhu Sumbal, the triumphant general of Sultan Ismail Adil Shah, and reigned till 1665. Muhammad Beg Khan-e Rosebahani was granted Bangangapalle and the nearby Jagir in eternal fiefdom. But he died without having a male heir and the jagir of Banganapalle was succeeded by Faiz Ali Khan Bahadur, who was his grandson and adopted son. In 1686, Aurangzeb, the Mughal emperor, conquered the Sultanate of Bijapur, however Faiz Ali Khan secured his fiefdom through the intervention of Mubariz Khan, his maternal uncle. He served as the viceroy of the Deccan under Aurangzeb.

The state of Banganapalle was reigned over by the descendants of Faiz Ali Khan, as a fief of the Mughal Empire, and later as a fief of Hyderabad after the Nizam of Hyderabad announced his independence from the Mughals in the year 1724. Faiz Ali Khan also died without a male heir and was succeeded by his grandson named Husain Ali Khan, who ascended the throne of Banganapalle. Towards the culmination of the rule of Husain Ali Khan, Hyder Ali of Mysore was increasing his power in the territory and Husain Ali changed his loyalty and allegiance to Hyder Ali. After the death of Husain Ali Khan in the year 1783, his young son Ghulam Muhammad Ali succeeded him under the Regency of his paternal uncle.

In the following years, Tipu Sultan, the successor of Hyder Ali drove them out from Banganapalle and they took refuge in Hyderabad. Later in the year 1789, they returned to reclaim the state of Banganapalle. Soon afterwards, the surrounding Jagir of Chenchelimala was obtained by the Nawab of Banganapalle through marriage.