For much of its early history, Dhanni was an uninhabited part of the Jammu state of the Dogra Rajputs, and Khokhar Rajputs, held as a hunting ground for the Rajas of Jammu.
While Mohazzam Shah, alias Dhanni Pir (from whom the Dhanyal tribe descended), arrived around 1190 from Dhanni, Chakwal, Shah's parents had ruled Multan State for about 190 years and were descended from Alvis, who migrated from Iraq early in the 8th century.