The city of Sialkot is believed to have been founded by one Raja Sul or Sala , the uncle of Pandhavas, whose heroic deeds are recorded in the epic Mahábhárta. After his death some 5000 years ago, there is a tradition that the dynasity continued for some 1500 years and then the country was flooded and remained one vast uninhabited region for about 1000 years. The popular belief is that it was re-founded in the reign of Vikramaditya of Ujjain by Raja Salivahan or Salban, who built the fort and city and gave the place its present name.

He was of Sia caste, and it is believed that the word "Sialkot" means 'the fort of Sia'. Legend also says the Salivahan had two sons; one Puran by name , was killed by the instrumentality of a wicked step-mother, and thrown inot a well, still the resort of pilgrims near Sialkot , called "Puran ka Kunwna", the well of Puran. (A Mohalla in the city is also named "Puran Nagar") Other son of Salivahan , Rasalu, became involved in wars with Raja Hudi, popularly stated to have been a Gakkhar chieftain. Being worsted in battle, Rasalu, as the price for piece, was forced to give his daughter in marriage to his conqueror, who gave the territory he had conquered to Rasalu's adopted son. According to another legend narrated to Mr. Prinsep:

"After the death of Raja Rasalu, the country is said to have fallen under the curse of Puran, for 300 years lying totally devastated from famine and incessant plunder."    

Sakala ( now Sialkot city ) was the capital of the Madras who are known in the late Vedic period ( Brihadaranyaka Upanishad ). Sakaladvipa , or the 'island of Sakala was the name of the doab, or the land lying between the two rivers, between Chandrabhaga (Chenab) and Iravati (Ravi). Sakala was the capital , or one of the capitals, of the Greek kings of the House of Euthydemus, and the residence of Menander (Milinda). After the invasion of the Hunas (Huns) in the last quarte of the fifth century A.D. it became the capital of Toramana and his son Mihirakula.

The antiquities of Sialkot are discussed by Sir Alexander Cunnigham in his Archaeological Survey Reports, II, 21, 22, and XIV, 44 to 47. It's early history is closely interwoven with traditions of the Raja Salivahan, his son Raja Rasalu and his foe, Raja Hudi, so famous in Punjab folk-lore