Modern History
The modern day town was founded around 1550 by Kamal Khan, a Mirani Baloch. Around 1610, the town was taken from the Mirani rulers by the Jaskani Baloch, who held it until 1787. Abdun Nabi Sarai was appointed governor by Timur Shah Durrani, but three years later it was included in the governorship of Muhammad Khan Sadozai, who transferred his seat of government to Mankera.
In 1794, Humayun Shah, the rival claimant to the throne of Kabul, was captured near Layyah and brought into the town, where his eyes were put out by order of Zaman Shah. Under the Sikh government, the town once more became the centre of administration for the neighbouring area, and after the British occupation in 1849, was for a time the headquarters of the District. In 1861 however, the District was broken up, and Layyah became a part of Dera Ismail Khan. In 1901 it was transferred to the new District of Mianwali.
In 1875, Layyah became a municipality and the chief industry of Layyah at that time was the manufacture of blankets. The town contained a dispensary and a municipal Anglo-vernacular middle school.
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