Shah Daula is a Sufi saint of the city and he met Sikh's aixth Guru Gobind Singh (1595–1644) when he was passing though Gujrat. After the decline of the Mughal Empire, the Sikh invaded and occupied Gujrat. The Muslims faced severe restrictions during the Sikh rule. The Sikh army under Sardar Gujjar Singh Bhangi in 1765 defeated the Gakhar ruler of Gujrat and annexed it to the Sikh Territories. From 1765–1846 Gujrat was controlled by the Sikhs.
Two main battles between British and Sikh armies were fought in this district: the Battle of Chillianwala and the Battle of Gujrat. Only after winning the battle of Gujrat on 22 February 1849 did the British declare victory in Punjab.
The predominantly Muslim population supported Muslim League and Pakistan Movement. After the independence of Pakistan in 1947, the minority Hindus and Sikhs migrated to India while the Muslim refugees from India settled in the Gujrat district. Muslims refugees from East Punjab, Haryana, Jammu started arriving and crossed the border in to Pakistan; many were given land in Gujrat District to settle.
There are many historical buildings and ruins in and around Gujrat. The Grand Trunk Road, commonly abbreviated as G.T. Road, built by emperor Sher Shah Suri, also passes through Gujrat. The road still exists today, along with its period stone wall. Historical buildings and ruins can be found in nearby towns throughout
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