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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