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The city of Murree was founded by Britishers, but for how long was the area had been populated is still unknown. Before the attack of Alexander in India the area was under the Rule of Raja Ambi and came under the rule of Muslim Mughals in sixteenth century. In 1832 the area came under the rule of Maharaja Ranjit Singh. The local Abbasis (Dhonds) believe that they belong from the offsets of Hazarat Abbas.

In 1949 Britishers occupied Murree. In 1951 they founded Murree city as a hill station at 7,000 feet for the British troops garrisoned on the Afghan Frontier in Peshawar. Due to the Peshawar’s hot and dusty weather and the spread of fatal disease the death rate among the British troops at the Peshawar cantonment managed to climb very high. The whole company could be wiped out in weeks. The British for their troops due to its suitable weather conditions selected the site of the Murree Hill Station in 1850. And in 1851, the troops were initially housed there. The permanent station was constructed in 1853.

In 1885 Britishers got occupation rights of Murree after buying most of the villages of the area in only Rs. 1940. A Church was sanctified in May 1857 in the center of the town. Along with was built the main road, The Mall. Across the Church were established the most significant commercial establishments, the Post Office, General Merchants with European goods, tailors and a millinery or hat store. Until 1947, access to the Mall was restricted for non-Europeans.

In the summer of 1857, local tribes, including the Dhond Abbasi, Satties, Karhral, Dhanyals, Awan, Syeds, Gakhers, as well as a few Gujjars, planned to attack Murree. The campaign was to be led by the chief of Dhond Abbasi, Sardar Sherbaz Khan as well as elders of Satties but this intelligence leaked out. Sardar Khan was captured and killed with gun shots with his other fellows at the place which is currently a cricket ground of Army Public School.

Murree municipality was established in 1867. In 1871, 1876, 1879 and 1888 Cholera spread out in Murree. From 1973 till 1876, Murree was the summer headquarters of the [Punjab] Local Government, which was later moved to Simla due to Cholera spread out. The population of Murree consisted of 2489 people according to the cencis of 1881. In 1887 there were about 1600 Europeans living at Murree which were represented by Mr. Hadson.

Murree was provided electricity in 1935. In 1935 father of Murree Mr. Cornell John Powel died and he is also burried there. In 1944 father of Pakistani nation Muhammad Ali Jinnah visited Murree and received a huge gathering of public for his welcome.

During 1947 independence war 6 hotels 100 bungalows were burned. After independence the people of the area held celebrations. In 1949 Indian planes drop two bombs which fall on the European graveyard known as “Gora Kaberstan” causing damage to graves. In 1955 the conference of Pakistan Constitutional Assembly was held at Club Hall Murree. In 1960 foreign embassies were shifted to Murree.

On 12 October 1998 Queen Elizabeth visited Murree with his husband Prince Philip and foreign minister Mr. Robin Cock. She prayed in the Holy Trinity Church. People of Murree presented gifts to her. On 3rd January, 1999 fire broke down at Mall Road.

After independence Murree appeared as one of the country’s most favorite tourist spot. Specially after the establishment of Islamabad Murree enjoyed a great boost in economy and tourism. Thousands of hotels are built and thousands of people visit every day in summer. Because of its easy accessibility Murree appeared as a tourist hub for the people of Islamabad, Lahore, Faisalabad, Peshawar and Karachi. It enormously improved the life status of the people of the area.