The Princely State of Gundiala, also known as Gundiali, 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 covered a total area of 15 sq miles and comprised of a total population of 1,825 in the year 1931. The taluka of Gundiala was located in the District Thana of Wadhwan and consisted of 2 villages, namely Bala and Gundiala, which were in distinctive blocks of territory north and south of the region of Wadhwan. The northern block was bounded by Rajpur in the north, where as the southern block surrounded by Vadod in the east; and by Dudhrej in the south.

The District Thana of Wadhwan was usually bounded by Lakhtar in the north; by the princely state of Limbdi in the south and the east; and by Wadhwan in the west. Most of the 17 estates were the branches of Wadhwan. Later in the year 1935, the region was merged with Bhoika Thana in order to create the new territory of Wadhwan Bhoika Thana. It included 35 estates, which covered a total area of 347 sq miles and comprised of a total population of 38,719 in the year 1931. The Princely State of Gundiala was incorporated as a part of the Baroda Agency, which was a sub division of the Western India States Agency. It was also a part of the Eastern Kathiawar Agency and the District Thana of Wadhwan. Later Gundiala became a part of the state of Gujarat.

The Princely State of Gundiala was not ruled by a single monarch but was shared by several shareholders, who held the title estateholders. The shareholders of the state of Gundiala were Jhala Rajputs, bhayats of Wadhwan. The former native state was a non- jurisdictionary state. The estateholders of the District Thana of Wadhwan were well educated and esteemed individuals. They were politically aware as well. The shareholders of the princely state of Gundiala paid annual tribute to Wadhwan. Under the Attachment Scheme of 1943, the princely state of Gundiala was attached to Wadhwan.

In the year 1948, the last native ruler of Gundiala state acceded the princely state to the Dominion of India, also known as Union of India, after the country gained independence from the British Government on 15th August 1947.