Dhamtari has a deep historical lineage, originally forming part of the ancient Dakshina Kosala region. For centuries, the area was inhabited by various indigenous tribes, notably the Gond, Halba, and Kamar communities, who cultivated the land and lived in harmony with the surrounding dense forests. By the medieval period, the region came under the influence of the Kalachuris and later the Marathas, before ultimately being absorbed into the British Raj's Central Provinces and Berar as part of the Raipur district.
Dhamtari holds a very proud and prominent place in India’s independence movement. In 1920, it became the epicenter of the famous "Kandel Nahar Satyagraha" (Kandel Canal Satyagraha), a peaceful farmers' protest against unjust irrigation taxes imposed by the British. The movement was spearheaded by local leader Babu Chhotelal Srivastava. The agitation gained such momentum that Mahatma Gandhi visited Dhamtari in December 1920 to support the farmers, a monumental event that forced the British to abolish the tax.
Post-independence, Dhamtari continued to grow as an agricultural and trade hub within Madhya Pradesh. On July 6, 1998, Dhamtari was officially carved out of the Raipur district to become an independent district, allowing for more localized administration. In 2000, it became part of the newly formed state of Chhattisgarh.
