Dhanidhar Fort was constructed during the rule of Mian Hathu, the former ruler of the Rajouri region, in the year 1855. This fort was built using the remnants of the materials of the buildings belonging to the Jaral Rajas of Rajouri. According to historians, the Hindu Kings from the Pal dynasty had initially ruled this site.
Dhanidhar Fort was actually constructed to save the Dogra forces from the outsiders. The high elevation made it suitable for the kings to keep a close watch on the surrounding region for defence purposes. In addition, Dhanidhar Fort was used to dump the grains that were accumulated from the local farmers as a part of the revenue system.