Shahdol Division is named after the headquarters town Shahdol which is located on the Bilaspur-Katni Section of the South-Eastern Railways. The etymology of the name as ascertained from the local residents points to its derivation from the name of the one Shahdolwa Ahir of Sohagpur village. The progenitor of the Ex-Illakadar family of Sohagpur, Jamni Bhan was the second son of Maharaja Virbhan Singh of Bagelkhand. He decided to settle at Sohagpur and assured maximum facilities to settler around, and also declared that places settled by clearing forests will be named after the pioneer settlers. Shahdolwa Ahir is believed to have settled the former village of Shahdolwa, about 2.5 Km. from the headquarters of Sohagpur after this declaration. Later on, the place used to be the camp site for the Maharaja of Rewa and British officers on tour. More villages were grouped into the village of Shahdol as it grew to a town. The District Headquarters was shifted from Umaria to Shahdol after the merger of princely states took place in 1948.
With lush green forests, natural wealth of Coal, Minerals and with primitive tribal population, the district Shahdol is situated among the range of Vindhyachal and heading fast in development track. The district has vast reserves of Coal mines.