Jehanabad was carved out of old Gaya district on 1st August, 1986. It was a sub-division of Gaya since 1872. The main aim behind the creation of this district was to accelerate the pace of development in tandem with tackling the problems of extremism, poverty, unemployment and underdevelopment.
The district of Jehanabad has a certain place in the history of India. The description is found in the famous book "Aine-e-Akbari". The book says that the place was badly affected by famine in the 17th century and people were dying of hunger. The Moghul Emperor Aurangzeb, in whose time the book was re-written, established a Mandi for relief of the people and named the "Mandi" as "JAHANARA". The Mandi was under the direct control and supervision of Jahanara. It is believed that she spent a great deal of time here. In the course of time, the place came to be known as "JAHANARABAD" and later as "JEHANABAD".