The state takes its name from the chief town, Bijawar, which was founded by Bijai Singh, one of the Gond chiefs of Garha Mandla, in the 17th century. The first ruler of the state was Bir Singh Deo (1765-93), a Bundela Rajput descended from the ruler of Orchha. It was conquered in the 18th century by Chhatarsal, the founder of Panna, a Rajput of the Bundela clan, by whose descendants it is still held. It was confirmed to Ratan Singh in 1811 by the British government for the usual deed of allegiance. In 1857 Bhan Pratap Singh rendered signal services to the British during the Mutiny, being rewarded with certain privileges and a hereditary salute of eleven guns. In 1866 he received the title of maharaja, and the prefix sawai in 1877. Bhan Pratap was succeeded on his death in 1899 by his adopted son, Sanwant Singh, a son of the maharaja of Orchha.
The state acceded to India on 1 January 1950, and became part of the state of Vindhya Pradesh, which was merged into Madhya Pradesh on November 1, 1956.