Gwalior State was an Indian kingdom ruled by the Sindhia dynasty. The state took its name from the old town of Gwalior, which, although never the actual capital, was an important place because of its strategic location and the strength of its fort. The state was founded in the early 18th century by Ranoji Sindhia as part of the Maratha Confederacy. Under Mahadji Sindhia (1761-1794) Gwalior State became a leading power in northern India, and dominated the affairs of the confederacy

The house of Sindhia traces its descent from a family of which one branch held the hereditary post of patel in Kannerkhera, a village 16 miles east of Satara. The head of the family received a patent of rank from the emperor Aurangzeb, while a daughter of the house was married to Raja Shahu, son and successor of Sambhaji. The founder of the Gwalior house was Ranoji Sindhia, who belonged to an impoverished branch, and according to a story current in Sir John Malcolm’s time had become a personal attendant on the Peshwa Balaji Baji Rao, and used to carry his slippers. He rose rapidly in favor, brought to the front by his soldierly qualities.

In 1726, together with Malhar Rao Holkar, the founder of the house of Indore , and the Ponwar, he was authorized by the Peshwa to collect chauth (25 percent of the revenues) and sardeshmukhi (10 percent over and above the chauth) in the Malwa districts, retaining for his own remuneration half the mokassa (or his remaining 65 percent). Ranoji fixed his headquarters in the ancient city of Ujjain , which ultimately became the capital of the Sindhia dominion, and in 1745 he died near Shujapur, where his centotaph stands. He left three legitimate sons, Jayapa, Dattaji, and Jotiba, and two illegitimate, Tukaji and Mahadji. Jayapa succeeded to the territories of Ranoji, but was killed at Nagaur in 1759. He was followed by his son Jankoji, was taken prisoner at the Third Battle of Panipat in 1761 and put to death, and Mahadji succeeded.

Mahadji Sindhia (1761-1794)
Main article: Madhavrao I Scindia
Madhavrao I, popularly known as Mahadji, and his successor Daulatrao took a leading part in shaping the history of India during their rule. Mahadji returned from the Deccan to Malwa in 1764, and by 1769 reestablished his power there. In 1772 Madhu Rao Peshwa died, and in the struggles which ensued Mahadji took an important part, and seized every chance of increasing his power and augmenting his possessions.

In 1775 Raghuba Peshwa threw himself on the protection of the British. The reverses which Sindhia’s forces met wht at the hands of Colonel Goddard after his famous march from Bengal to Gujjarat (1778) the fall of Gwalior to Mahor Popham (1780), and the night attack by Major Camac, opened his eyes to the strength of the new power which had entered the arena of Indian politics.