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Hafizabad is an old city. In 327 BC, when Sikandar-e-Azam attacked Hindustan, the territory of the Sandal Bar (where Hafizabad is now located) was a populated area. Big cities were located in this territory, and a lot of sub states were organised here under the presidency of maharajas and rajas.
In the 6th century, when the famous Chinese tourist Hiuen Tsang came here, the area was backward but not underpopulated. Then the tourist moved to Sangla; he stayed one night in a town, then called Jai Pura, which was located near the village Koriala (Kadyala).
In 997 CE, Sultan Mahmud Ghaznavi, took over the Ghaznavid dynasty empire established by his father, Sultan Sebuktegin, In 1005 he conquered the Shahis in Kabul in 1005. This was followed by the conquests of the Punjab region. The Delhi Sultanate and later Mughal Empire ruled the region. The Punjab region became predominately Muslim due to missionary Sufi saints whose dargahs dot the landscape of Punjab region. During the Delhi Sultanate period a big city was situated at the site of the present village of Mehdiabad. But afterwards this territory became unpopulated and jungle-like because of shortage of water and Afghan incursions. This situation persisted until Mughal Emperor Akbar's period. Hafizabad was formerly a place of some importance, and is mentioned in the Ain-i-Akbari as headquarters of a Mahal. Hafiz, the founder, was a favourite of emperor Mughal Emperor Akbar.
According to one legend, Mughal Emperor Akbar came to the present-day site of Hafizabad on a hunting trip. The King lost his company as he was busy hunting. This territory was a jungle-like area and there was nothing to eat or drink. Akbar felt thirsty and needed to drink some water. Suddenly he was astonished to see a smoke. He followed the smoke and found a cottage, and in the cottage there was a man named Sarmast, a Muslim Sufi. Akbar told him about his thirst and asked for some water. Sarmast had no water, but he called up a grazing deer and milked it to serve Akbar with milk. Akbar drank the milk and told the Sarmast that he was a king and said, "Please ask me for anything you want. I will give you whatever you want." Faqir Sarmast asked him to build a town for his pupils. The Mughal Emperor Akbar promised and ordered the current Hakim, named Hafiz Meerak, to construct a city there.
Hafiz Meerak did as the Mughal Emperor Akbar ordered. The town, Hafizabad, took its name from his name. One source says that Akbar wanted to name the town Akbarabad, but the name Hafizabad became popular until Akbar knew about its creation. Akbar let the city retain its name, Hafizabad. Historians think that this city came into being between 1556 – 1570.
