The history of Swat valley goes back to around 2000 years ago. It was known as Udyana and later the name was changed to Suvastu. The valley was a very peaceful area for living until the 11th century. The game of power led to the disruption of the valley and it was first conquered by Mahmud of Ghazni. The ritual of acquiring the lands continued and Swat valley was then taken over by the Yusufzais.

In the 19th century, Swat valley was under Akhund Sahib who believed in the Muslim law. At this time, the economy of Swat valley flourished due to agriculture and it became one of the significant trading areas for businesses.

The population of Swat valley is around 1,257,602 with prominent cultural groups including Pakhtuns, Yusufzais, Kohistanis, Gujars and Awans.

Swat valley is also famous in the world as the "holy land of Buddhist learning and piety." It was one of the major hubs of Buddhist pilgrimage. It was said in the early times that Buddha himself came to Swat in the process of his last reincarnations and he spread the learning of peace and harmony. It was also given the name of "cradle of Buddhism".

The name of Swat was Udayana and it stands for the ancient epics. It was also mentioned in the history that Alexander of Macedonia had fought many major battles in this land before he crossed the delta of Indus River.

Swat was once the cradle of Buddhism where 1400 monasteries had survived and flourished and they also made a Gandhara School of Sculpture.