Dhanbad district was formed in the year 1956. It included the old Dhanbad subdivision, Chas and Manbhum district's Chandankiyari police stations of Sadar subdivision. Since 1928, it is a Police district. After 1971, when the reorganization of districts took place in the state of Bihar, Dhanbad district remained unaffected. Dhanbad Municipality is the headquarters of the district and the chief town. In 1991, Chas Sub-division was carved out to form Bokaro district and Bermo Sub-division was carved out in Giridih district. Giridih and Bokaro border the west of the district whereas Giridih and Dumka district border its north. The east and south of the district is surrounded by the Purulia district of West Bengal.

Early history of Dhanbad district has not been explored very clearly as any rock inscriptions, old coins and copper plates were not found in the district. Even documents of palm leaf or copper plates also could not be discovered by the archaeology department. The most ancient authentic documents comprised of papers and dates back to merely hundred years ago. However history of Manbhum district gives glimpses of the ancient history of Dhanbad district.

Dhanbad was a part of the former Manbhum district having its headquarters in Purulia, which is the current district of West Bengal. The name Manbhum was derived from the name of Raja Man Singh who acquired this territory from Akbar, Mughal Emperor, as a gift after he won a battle. The district was far stretched and vast and was thus divided into Singhbhum, Birbhum and Manbhum owing to administrative purposes.

Dhanbad was declared as a district on the recommendation of the State Reconstitution Commission through notification 1911 on 24th October 1956. The district was previously divided into two subdivisions namely Baghmara and Dhanbad Sadar. Baghmara comprised of four blocks whereas Dhanbad Sadar comprised of six blocks. 1654 villages, 228 Panchayats and 30 Nagar Palikas were included in Dhanbad district. The vast district had two police headquarters in Dhanbad and Bokaro respectively. The present district of Dhanbad however consist of only Dhanbad Sadar subdivision including 8 blocks namely Jharia, Dhanbad, Baghmara, Govindpur, Nirsa, Tundi, Census and Baliapur. A large area of the district is covered with forest and hillocks where laterite soil is prevalent.