According to legend, Kutch was ruled by the Nāga chieftains in the past. Sagai, a queen of Sheshapattana, who was married to King Bheria Kumar, rose up against Bhujanga, the last chieftain of Naga. After the battle, Bheria was defeated and Queen Sagai committed sati. The hill where they lived later came to be known as Bhujia Hill and the town at the foothill as Bhuj. Bhujang was later worshiped by the people as snake god, Bhujanga, and a temple was constructed to revere him.
Bhuj was founded by Rao Hamir in 1510 and was made the capital of Kutch by Rao Khengarji I in 1549. Its foundation stone as state capital was formally laid on Vikram Samvat 1604 Maagha 5th (approx. 25 January 1548). From 1590 onwards, when Rao was forced to acknowledge the Mughal supremacy, Bhuj came to be known as Suleiman Nagar amongst Muslims. The city's walls were built by Rao Godji I in 1723[dubious ], and the Bhujiya Fort by Devkaran Seth in Rao Deshalji I's time (1718 - 1741).
Bhuj has been attacked six times. In two instances, the defense was successful and in four other instances, the defense failed. In 1728, an attack by Sarbuland Khan, Mughal Viceroy of Gujarat, was repulsed by Rao Deshalji I, and, in 1765 Mian Ghulam Shah Kalhoro was, by a timely display of the strength of the fortifications, induced to withdraw. During the civil troubles of the reign of the Rao Rayadhan III, Bhuj was thrice taken, by Meghji Seth in 1786, by Hansraj in 1801, and by Fateh Muhammad in 1808. On 26 March 1819, the hill fort of Bhujia was captured by a British detachment under Sir William Keir