In the book of history, it has been noted in the treaty between Sadashivrao Bhau and Nizam of Hyderabad at the conclusion of battle of Udgir by which Peshwa received revenue from the town. After this, Peshwa went to fight third battle of Panipat in 1761. Parbhani languished for over 650 years under Muslim rule, under the Sultans, the Mughals and later the Nizam. The town remained a part of the Hyderabad State under the rulership of the Nizam until Operation Polo of the Indian Army in 1948. Thereafter it became a part of the independent Republic of India. Until 1956 the town remained a part of Hyderabad State within India. Under the administrative reforms that year and the break-up of the State of Hyderabad, Parbhani and the adjacent towns were transferred to the multilingual Bombay State. Since 1960 it has been a part of Maharashtra state. Historically name Parbhani is derived from "Prabhavati Nagari" named after goddess "Prabhavati" meaning Goddess with great aura
