The city of Siálkot is believed to have been founded by one Raja Sul or Sálá , the uncle of Pandhavas, whose heroic deeds are recorded in the epic Mahábhárta. After his death some 5000 years ago, there is a tradition that the dynasty continued for some 1500 years and then the country was flooded and remained one vast uninhabited region for about 1000 years.

The popular belief is that it was re-founded in the reign of Vikramaditya of Ujjain by Raja Sáliváhan or Sálbán, who built the fort and city and gave the place its present name.

He was of Sia caste, and it is believed that the word "Sialkot" means 'the fort of Sia'. Legend also says the Salivahan had two sons; one Puran by name , was killed by the instrumentality of a wicked step-mother, and thrown inot a well, still the resort of pilgrims near Sialkot , called "Puran ka Kunwna", the well of Puran.

(A Mohalla in the city is also named "Puran Nagar") Other son of Salivahan , Rasalu, became involved in wars with Raja Hudi, popularly stated to have been a Gakkhar chieftain. Being worsted in battle, Rasalu, as the price for piece, was forced to give his daughter in marriage to his conqueror, who gave the territory he had conquered to Rasalu's adopted son.

According to another legend narrated to Mr. Prinsep:

"After the death of Raja Rasalu, the country is said to have fallen under the curse of Puran, for 300 years lying totally devastated from famine and incessant plunder."