text: Malhar Rao Holkar (1694–1766), a Maratha chief serving Peshwa Baji Rao, established the dynasty's rule over Indore. In the 1720s, he led Maratha armies in the Malwa region, and in 1733 was granted 9 parganas in the vicinity of Indore by the Peshwa. The township of Indore already existed as an independent principality established by Nandlal Mandloi of Kampel,  Nandlal Mandloi was won by the Maratha force and allowed them to camp across the Khan  River. In 1734, Malhar Rao established a camp later called Malharganj. In 1747, he began construction of his royal palace, the Rajwada. By the time of his death, he ruled much of Malwa, and was acknowledged as one of the five virtually independent rulers of the Maratha Empire.
  He was succeeded by Ahilyabai Holkar (r. 1767–1795), his daughter-in-law. She was born in the Chaundi village in Maharashtra. She moved the capital to Maheshwar, south of Indore on the Narmada River. Rani Ahilyabai was a prolific builder and patron of Hindu temples in Maheshwar and Indore. She also built temples at sacred sites outside her kingdom, from Dwarka in Gujarat east to the Kashi Vishwanath Temple at Varanasi on the Ganges.
  The adopted son of Malhar Rao Holkar, Tukoji Rao Holkar (r. 1795–1797) briefly succeeded Rani Ahilyabai upon her death. Tukoji Rao had been a commander under Ahilyabai for her entire rule.
  The fall of the Maratha Empire
  His son Yashwantrao Holkar (r. 1797–1811) (also called as Jaswant Rao) succeeded him upon his death. He tried to free the Delhi Mughal Emperor Shah Alam II from the British in the unsuccessful Second Anglo-Maratha War. The grateful Shah Alam gave him the title of Maharajadiraj Rajrajeshwar Alija Bahadur in honor of his bravery.