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Sri Muktsar Sahib is a city and district headquarters for the district of Sri Muktsar Sahib, located in Punjab, India. Historically known as Khidrana or Khidrane di dhab, the city was made the district headquarters in 1995. Chronological evidence indicates that the city was named Muktsar after the battle of Muktsar in 1705. The government officially changed the name of the city to Sri Muktsar Sahib in 2012, though the city is still primarily referred to by its unofficial name – Muktsar.

The modern day Muktsar city was historically a semi-desert terrain named Khidrana or Khidrane de dhab, situated near a lake. Not much is known about the early history of the present area of the city. This may partly be due to the river Sutlej. The Sutlej is notorious for shifting its course, and it is stated to have flowed as far east as Muktsar within historical times. While shifting its course it is said to have leveled down everything that came its way, leaving behind ruins and mounds of earth and pottery debris. The present area of Muktsar is almost entirely destitute of ancient buildings and contains no places mentioned in early records. Legends connected with Raja Sálbán attach to one or two other ruined sites near Muktsar such as that at Sarai Naga, 10 miles (16 km) to the east of Muktsar. But the city does not date from an earlier period than the reign of Akbar.

Source : Wikipedia