Archaeological discoveries confirm that the region of present-day Mulugu district preserves Lower Paleolithic human activity. In late 2023, floods exposed a dried stream bed between Gurrevula and Bhupathipuram villages, revealing quartzite hand axes, cleavers, and other heavy-duty tools characteristic of early hominin technology. A significant Paleolithic tool-manufacturing site was identified at Bhupathipur in Kannaigudem mandal, where archaeologists documented biconvex and bifacial tools along with hundreds of smaller Mesolithic microliths. These findings indicate continuous occupation from the Lower Paleolithic through the Mesolithic, demonstrating that the area functioned as a prehistoric tool-production hub for several millennia.

The district is a major megalithic locus, with hundreds of dolmen burial chambers and anthropomorphic menhirs. Jajirala Hill in Bommai Gudem village, Mangapet Mandal, has yielded three rare human-shaped menhirs dating to the Megalithic period. Each stone sculpture measures approximately 3.5 feet in height and features distinctly carved anthropomorphic details — a head, rectangular torso, shoulders, and waist. In the surrounding region — at Suragundaiah Gutta, Sudda Gutta, and Kappalaiah Gutta — over 500 similar structures have been documented.

Prehistoric Burial Sites: A massive cluster of megalithic human burial sites was discovered in Motlagudem village, Damaravai mandal. Locally referred to as "Rakasi Bandalu" (giant stones) and "Rakasi Guhalu" (giant caves), these dolmen burials are believed to be one of the largest concentrations of dolmen burials in India. Spread across nearly 100 acres in the Kappalayi Gutta region, each structure consists of four large vertical stone slabs with a massive capstone weighing approximately 10 to 20 tons placed on top.

A significant archaeological discovery in the region is the massive Mallur Gutta Fort, located near Mallur village in Mangapet Mandal. The fort features an enormous 8 km-radius fortification wall with seven entry points, making it one of the largest of its kind in South India – reportedly even larger than the Warangal and Golconda forts.

Dating back to the Satavahana period (1st–3rd century CE), this sprawling structure highlights the region's strategic importance along the Godavari river frontier long before the rise of the Kakatiyas. The site also includes the ancient Hemachala Lakshmi Narasimha Swamy Temple, which houses a Swayambhu (self-formed) deity, along with rock formations and caves, making it a site of immense historical and cultural value.

The Polavasa chiefs ruled the Godavari–Mulugu–Eturnagaram belt before the Kakatiyas rose to power. While their inscriptions are found mainly in the Karimnagar region, their political sphere and influence extended into the Mulugu district. They were significant local powers who controlled the strategic forest and riverine tracts of the eastern Deccan.

No direct inscriptions from the Early Chalukya or Rashtrakuta periods have been discovered in Mulugu district yet. However, stylistic evidence found in temple fragments and architectural remnants indicates their cultural and architectural influence in the region. Such fragments have been observed at:

• Ramappa region
• Palampet
• Govindaraopet

These remnants suggest that the region was part of the broader cultural sphere of the early Deccan empires, even if direct epigraphical records are currently absent.

Rudra, also known as Rudra-senani, was the most celebrated chief of the Recherla line. He served as the Commander-in-Chief of the Kakatiya army under King Ganapatideva. Around 1198 CE, when King Ganapati was captured by the Seuna (Yadavas) after his father Mahadeva was killed in battle, Rudra administered the kingdom in Ganapati's name and successfully reinstated him on the throne after his release.

Rudra is best known for establishing the town of Palampet and commissioning the magnificent Rudresvara (Ramappa) Temple in 1213 CE. The temple's inscription records his genealogy, tracing his lineage back to Brahma-senapati and listing his ancestors Kataya, Kama, and Kataya II. His mother was Bejjama alias Bejjamba, and his father was Katreddi (or Kad-reddi) alias Kataya.

Kataya was another prominent Recherla chief who ruled over Mamdadi. According to the Machapur inscriptions (Nos. 119 and 318 in Vol. II of Epigraphia Telanganica), he granted lands for the daily services (dhupa, dipa, naivedya) of the deities Lokesvaradeva, Ekkesvaradeva, and Patideva. This indicates his role as a patron of religion and his authority over the region.

Gunda Dannaya was the founder of the Malyala dynasty. He received power from the Kakatiyas and was succeeded by his sons. One of his sons, Gunda Dandanayaka, served King Ganapati and Queen Rudrama Devi as a military commander. He bore the titles Pedamuthuganda, Divilunthaka, and Raya Garundaka, which were bestowed upon him by the Kakatiya king for his victories.

Chaundapa was a general under King Ganapati who led a successful campaign against the Cholas in the southern region. He married Mailama, who was born into the Viriyala family. The Katukuru inscription (dated 26 January 1206 CE) records that Mailama constructed three temples dedicated to Mallikarjuna, Annesvara, and Aitesvara, named after herself, her father, and her mother respectively. She also caused the digging of two tanks at Kattakuru. Chaundapa built the temple of Caundesvara at Kondiparti.

Kata was a famous warrior in the Malyala line who conquered Dannalakota (or Dharanikota) as a commander of the armies of Kakatiya king Rudradeva. In recognition of his achievement, the king conferred upon him the epithet Kota-gelpata. His son was Chaundapa.

Following the Kakatiya decline, the region came under the influence of the Bahmani Sultanate and later the Qutb Shahi dynasty of Golconda. However, the dense forests and tribal populations meant that central control remained limited. The region served as a buffer zone between the Deccan sultanates and the tribal hinterlands.

With the Mughal conquest of Golconda in 1687, the region came under Mughal suzerainty, and later under the Asaf Jahi (Nizam) dynasty of Hyderabad. The Nizams maintained nominal control over the forested tracts, but the tribal communities largely governed themselves through traditional systems. The region remained underdeveloped and isolated during this period.

Administrative Status: Throughout the Nizam's rule, Mulugu functioned as a peripheral, tribal-dominated territory with limited administrative reach. It existed as a gram panchayat (village council) within the larger state structure. The dense forests and challenging terrain made effective governance difficult, allowing tribal communities to largely govern themselves through their traditional systems and customary laws.

Declaration of Agency Areas: In 1949, one of the last significant acts of the Nizam's government was to notify 23 villages in the district as "Agency Areas". This administrative designation was later upheld by the Indian government's Presidential Order in 1950, recognizing the special status of these tribal-dominated regions and laying the foundation for future tribal welfare and administrative policies.

After Operation Polo (September 1948), the region became part of Hyderabad State, Indian Union. Following the States Reorganisation Act in 1956, it became part of the newly formed State of Andhra Pradesh. Mulugu remained a part of Warangal district during this period.

In 1952, shortly after the integration of Hyderabad State into India, the government took the notable step of declaring the Eturnagaram Wildlife Sanctuary. This makes it one of the oldest sanctuaries in South India. The sanctuary, spread across dense forests along the Godavari river, was established to protect the region's rich biodiversity, including tigers, leopards, sloth bears, and numerous bird species. It remains a vital ecological and cultural landmark in the Mulugu district.

The region actively participated in both phases of the Telangana statehood movements (1969 and 2009–2014). In 2014, Telangana was formed as the 29th state, and Mulugu became part of the new state. In 2016, the Jayashankar Bhupalpally district was created, of which Mulugu was a part.

On 17 February 2019, Mulugu district was officially formed by bifurcating the Jayashankar Bhupalpally district. It became the 32nd district of Telangana and the least populated district in the state, with a population of 294,671 as per the 2011 census. The district consists of 9 mandals: Mulug, Venkatapur, Govindaraopet, Tadavi (Sammakka Sarakka), Eturunagaram, Kannalgudem, Mangapet, Venkatapuram, and Wazeed.

The district has seen significant Naxalite activity. In 2001, Naxalites from the People's War Group (PWG) attacked the Eturnagaram police station using directional mines, killing five people (one civilian, one forest employee, and three police personnel). The road near the police station was subsequently blocked for 24 years.

On 1 March 2025, the blocked road was reopened for vehicles and pedestrians after Mulugu district SP Dr P Shabarish confirmed that no active Maoist cadres remained in the region. Residents expressed happiness over the reopening, as vehicles could now take the direct route instead of the two-kilometre diversion that had been in place for decades.

In August 2023, heavy rains and floods caused devastation in Mulugu district. Jampanna Vagu overflowed near Dodla in Eturnagaram mandal, resulting in the deaths of eight people. The floods caused widespread damage to infrastructure and crops.

The district has gained significant attention for its archaeological wealth:

• 2022: An ancient Shiva lingam was found during excavations in Mangapeta mandal, Ramanakkapeta panchayat.
• 2023: A rare anthropomorphic menhir dating to the megalithic era was discovered, depicting a human figure with a curly head, oblong chest, shoulders, and lower waist.
• 2025: Three rare human-shaped menhirs were unearthed atop Jajirala Hill in Bommai Gudem village.
• 2026: A massive cluster of megalithic dolmen burials was discovered in Motlagudem village, believed to be one of the largest concentrations in India.