According to tradition, this town was founded by Raja Bhoj, the Parmar King of Dhar (1010-53), and it is named after him. It was built at the time of expansion of his capital Dhara. Raja Bhoj was said to be a great king.
Not only was he a great writer with a number of books on medicine, astronomy, religion, architectures and the arts to his credit but he also founded a number of great monuments and institutions during his reign.