In ancient times, Parbhani was known as “Prabhavati nagari[11] (Marathi: प्रभावतीनगरी) on account of the existence of a massive temple of Goddess Prabhavati. The name “Prabhavati” means goddess Lakshmi and Parvati.[12] Present name Parbhani is a corrupt form of Prabhavati.[13]

Parbhani was for over 650 years under Muslim rule, under the Deccan sultanates, the Mughals and later the Nizam of Hyderabad.The town remained a part of the Princely State of Hyderabad under the rulership of the Nizam until Operation Polo of the Indian Army in 1948.[14][15] Thereafter it became part of the independent Republic of India.[16] Until 1956 the town remained a part of Hyderabad State within India. Under the administrative reforms that year and the break-up of the State of Hyderabad, Parbhani and the adjacent towns were transferred to the multilingual Bombay State.[17] Since 1960 it has been a part of State of Maharashtra.[18]