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The city of Hisar was founded by a Muslim ruler, Firozshah Tughlaq in 1354 A.D. ‘Hisar’ is an Arabic word which means ‘Fort’. The city, which we know today as ‘Hisar’, was originally called ‘Hisar Firoza (also Hisar-e-Firoza) or in other words the ‘Fort of Firoz’. But as the days rolled by, the very word ‘Firoza’ was dropped from its original name. The construction work of the Hisar city started in the year 1354 A.D. under the personal supervision of Firozshah himself who stayed here for a sufficient time. The boundary wall of Hisar Firoza was built of stones brought from the hills of Narsai. The fort city was also surrounded by a big ditch dug round the wall. A large and deep tank was constructed inside the fort, and the water used to replenish the ditch. Inside the fort, a fine palace having a complex of different buildings was built. Well laid-out gardens added to the beauty of the palace. The initial stage of the city, it has been reported was completed after the incessant work of two and a half years.

The nobles and Amirs were also directed by the Sultan to get their residences built here. The fort-city had four gates, which were subsequently named as the Delhi Gate to the North Mori Gate to the East, the Nagori Gate to the South and Talaqi Gate to the West. The palace, popularly known as 'Gujari Mahal', was made for his beloved. The Gujari Mahal still stands in its austere majesty. This palace is a complex of different buildings, including the royal residence of the sultan Firozshah, Shahi Darwaza, Diwan-e-Aam, Baradari with three tehkhanas, a Hamam, a mosque and a pillar.