Not much research has been done on the history of the town. The oldest documented reference can be seen for the nearby village called as 'Chikumbara' in the stone script which was found in nearby village Devtak, 4 km from the Nagbhir towards east. The stone script, written in prakrit language, tells that the village chikumbara was donated to some bramhin by order of some minister of Samrat Ashok, in 1st century B.C. Still there is village called as chikmara near nagbhir which proves the link with history. The stone is kept in central museum Nagpur. There are many stone Menhirs in the western part of the town at hill base. Around 30 can be seen in rows. Some researchers have related them to 3000 year old tribal custom of erecting a stone pillar at the burial place. But these stones need more research and preservation.
Nothing much is known about the founder and time of foundation for this place. British records go back till 1850 when it was a famous town, with population of 4000, for its good quality silk which was of export quality. Records of export can be found in British market surveys of that time.