Pachmarhi contains several caves hilltop caves, and the community's name is believed to be derived from the Hindi words Panch ("five") and Marhi ("caves"). According to a legend, these caves were built by five Pandava brothers of Mahabharatha era during their thirteen years of exile[3]

The region was part of the Bhonsle Kingdom and was later ruled by the Marathas in the 18th century.

It was later part of the Gondi kingdom of Bhagvat Singh in the 19th century, although there was no permanent settlement at that time. The origins of modern Panchmarhi can be traced back to 1857, when Captain James Forsyth of the British Army and Subhedar Major Nathoo Ramji Powar noticed the plateau while en route to Jhansi.[4] It quickly developed into a hill station and sanatorium for British troops in the Central Provinces of India, and Powar was made Kotwal. (a person in charge of the armoury)

In 1901, the year-round population was 3,020, with a population of double this number during the hot summer months. Pachmarhi served as the summer capital for the Central Provinces.

UNESCO added the Pachmarhi area to its list of Biosphere Reserves in May 2009, due to the many rare plant species in the vicinity. The total area of Pachmarhi Biosphere Reserve is 4981.72 km2, and it is located at latitude 22° 11’ to 22° 50’N and longitude 77° 47’ to 78° 52’E. The reserve spans parts of three civil districts, viz; Hoshangabad (59.55%), Chhindwara (29.19%) and Betul (11.26%). It includes three wildlife conservation units viz., Bori Sanctuary 485.72 km2), Satpura National Park (524.37 km2) and Pachmarhi Sanctuary (491.63 km2).[5][6]