The ruling house of Kurwai was founded by Muhammad Diler Khan, an Afghan Pashtun from the Orakzai tribe as a feudal state. Diler Khan was a contemporary and cousin of Nawab Dost Muhammad Khan of Bhopal. In 1737, Marathas under the leadership of PeshwaBaji Rao I, defeated the forces of the Mughals and the Nawab of Bhopal in the Battle of Bhopal. Following the victory of the Marathas, Bhopal came under the suzerainty of the Maratha Empire as a semi-autonomous state and remained so until the Third Anglo-Maratha War in 1818. In the 1740s, Kurwai, then a feudal state, came under the direct rule of the Peshwas of the Maratha Empire. In 1761, Diler Khan's son Izzat Khan formed an alliance with the Marathas, and fought for them at the Third Battle of Panipat in 1761. The Marathas suffered a defeat in the battle, and Diler Khan was badly wounded in action. He was rescued by his maternal uncle. After recovering, Izzat Khan joined enemy camp, and received high commands, titles and territories from Ahmad Shah Abdali. He died of the battle injuries after returning to Kurwai. Izzat Khan's son Hurmut Khan was imprisoned by the Marathas for three years. He was freed after he ceded several villages to them, and agreed to an indemnity of 3 lakhs rupees to the Marathas. Hurmut Khan' son Akbar Mohammad Khan formed an alliance with the British in hopes of gaining back his territory from the Marathas, but following the Second Anglo-Maratha War, the British annexed the recovered lands for themselves and Kurwai became a princely state under the British suzerainty. Hurmut Khan's successors ruled the state until 1887, when Najaf Khan died without any male heir; his elder brother Muzaffar Khan had also died without heir. After a brief struggle with the Nawab of Basoda, Najaf Khan's maternal grandson Munawar Ali Khan became the ruler of the princely state. After Munawar Khan died without issue, his younger brother Yaqub 'Ali Khan became the Nawab of Kurwai. Yaqub married Munawar's wife Umar un-nisa. Their four-year-old son Sarwar Ali Kan became the Nawab after Yaqub's death in an accident at Bhopal.
When Sarwar Ali Khan was young, the state was ruled by a regency council headed by Umar un-nisa, who came to be known as "Sarkar Amma". She established several institutions for welfare of the citizens, including a rural bank that provided interest-free loans. Sarwar Ali Khan and his sisters were the first generation in the family to receive English education. He studied at the Daly College, Mayo College and the Sandhurst Military Academy. After graduating from Sandhurst in 1921, he severed with the Worcestershires until 1923. During this stint, he guarded Mahatma Gandhi in the British custody. In 1926, he married Abida Sultan, the eldest daughter and heiress presumptive of the Nawab of Bhopal. Their only son, Shaharyar Khan, was born in 1934. The marriage eventually failed, and Sarwar Ali later married other women. Abida Sultan gave up her right to the throne of Bhopal and opted for the Muslim nation Pakistan in 1950, eventually entering that country's Foreign service. Later, Shaharyar Khan became the Foreign Secretary of Pakistan and then the Chairman of the Pakistan Cricket Board. Sarwar Ali Khan's second wife was Ayesha, daughter of the Nawab of Wai. They had three children: Kaiser Zaman, Zafar Ali Khan and Munawar Ali Khan. During Sarwar Ali Khan's reign, Kurwai saw development of modern infrastructure including roads, telephone network, sanitary facilities, bridges, schools, courts, police station, civil hospital government offices, a power station and a Legislative Assembly. The power was transferred to the Government of newly independent India in 1947. On 15 June 1948, Kurwai State officially acceded to the Indian Government. Kurwai became part of the newly created state of Madhya Bharat, and was added to Vidisha District. Madhya Bharat was merged into Madhya Pradesh on 1 November 1956. Sarwar Ali Khan continued to be involved in the political process. A friend of the Harijan leader Jagjeevan Ram, he encouraged the emancipation of the lower castes, and also campaigned against the dowry system and forced marriage. After his death in 1986, the title Nawab of Kurwai passed on to his son Zafar Ali Khan. Sawar Ali's daughter Kaiser Zaman studied English at Somerville College, Oxford University. She later founded the All Saints School Bhopal and the All Saints College of Science & Commerce.
List of Nawabs
Rulers of Kurwai State bore the title of 'Nawab'. The rulers of Basoda and Mohammadgarh states were part of the same dynasty:
1713 – 12 Oct 1722 Mohammad Diler Khan
12 Oct 1722 - 1762 Mohammad `Izzat Khan
1722 – 1727 Mohammad Ahsanullah Khan -Regent
1762 – 1792 Mohammed Hormat Khan
1792 - 1839 Akbar Mohammad Khan
1839 – 11 Aug 1858 Mohammad Mozaffar Khan
11 Aug 1858 – 15 Jan 1887 Mohammad Najaf Khan
15 Jan 1887 – 10 Sep 1896 Monawar `Ali Khan
15 Jan 1887 – 1892 Mian Mazhar `Ali Khan -Regent
10 Sep 1896 - 1 Oct 1906 Mohammad Ya`qub `Ali Khan
1 Oct 1906 – 15 Aug 1947 Mohammad Sarwar `Ali Khan
1 Oct 1906 – 9 Apr 1923 Umar un-nisa Begum -Regent