In 1761, before the conquest of the state by the famous Sikh leader Sardar Jassa Singh Ahluwalia in 1772, the town of Kapurthala was ruled by a Rajput, Rai Ibrahim Bhatti. After 1772, the Bhatti Rajputs continued to be the defenders of Kapurthala State and were made generals in the armies of Jassa Singh and his successors. Another famous Rajput from Kapurthala is Rai Ram Dev, who founded the town of Batala in 1472 AD. The Rajputs of the Kapurthala State make their claim as descendants of the Rajput Ruling Dynasty of Jaisalmer.

In 1878-1880, on the outbreak of the 2nd Afghan War, Kapurthala State's Imperial Service Troops rendered active service on the Bannu frontier under General Watson. The Kapurthala Force was represented by Colonel Mohammed Ali Khan, Chief of all forces, and Colonel Ali Altaf Khan, Chief of Artillery forces. The detachment was highly spoken by the British Officers for its discipline and good conduct. Ali Altaf Khan, then a young soldier, was sent by the British to study in Southern England at the Honorable Artillery Company.

In 1877, Jagajit Singh, a boy of only 5-years, was installed as the Maharajah. During his minority, Kapurthala State was managed by some brilliant British Superintendents, including Sir Lepel Griffin, Sir Mackworth Young, Sir Charles Rivaz, Sir Frederick Fryer, and Sir Denzil Ibetson (A Glossary of the Tribes and Castes of the Punjab and North-West Frontier Province, Government Printing, Punjab, Lahore, 1919).