The Princely State of Gadhali was one of the well known princely states of India that was administered by a native prince under the guidance of the British authorities. The princely state was under the indirect control of the British Empire in India. The region was scattered over a total area of 5 sq miles and comprised of a total population of 1,693 in the year 1931. The taluka of Gadhali was located in Songadh Thana and included 3 villages. Gadhali state was bounded by Bhavnagar to the south, north and west; it was bordered by 2 blocks of territory belonging to Lathi in the west. Songadh Thana included 22 estates with around 355 recognized estateholders, who were mostly Gohel Rajputs. 13 talukas were offshoots of Bhavnagar and 8 talukas were of Lathi.

The Princely State of Gadhali was incorporated as a part of the Baroda Agency, which was a sub division of Western India States Agency. Later it was included in the Eastern Kathiawar Agency, Songadh Thana and the Indian state of Gujarat. Gadhali state was a non-jurisdictionary state. The erstwhile princely state of Gadhali paid tribute to the princely state of Baroda and the princely state of Junagadh. According to the Attachment Scheme of 1943 was attached to the princely state of Bhavanagar. Gadhali claimed by more than one ruler officially described as shareholder. There were 33 estateholders in Gadhali state. The Gohel Rajputs were the ruling family of the Princely State of Gadhali.

After the independence of India in the year 1947, the princely state of Gadhali was acceded to the newly formed Union of India, also known as Dominion of India.

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