The Mughal Emperor Aurangzeb, was born in the fort of Dahod in 1618, during the reign of Mughal Emperor Jehangir as his son and future Mughal Emperor Shah Jehan was the "Subedar (Governor) of Gujarat". Emperor Aurangzeb was quoted to have ordered his ministers to show favors to this town, as it was his birthplace. Tatya Tope, the freedom fighter, is known to have absconded towards Dahod during the freedom fighting movement. He is believed to have lived his last days in this region.
It was previously within the boundaries of the Panchmahal District, but is now a separate district. The far flung area of Godi Road, Godhra Road has been considerably developed, making the overall habitation and commercial area very expansive. Also, there is Urban Bank Hospital, for the welfare of the people of the town and around. With good doctors and facilities, also a dream of Sheth Shree Girdharlal Sheth, with help of town members and people abroad, did it become possible. Quite recently the foundation stone for a Dental College has been laid by the trust of the philanthropist Girdharlal Sheth, known as the Dahod Anaj Mahajan. Dahod is a model town in Gujarat