The city was founded by the British Governor General To Punjab Sir James Loyal for whom it was originally named Lyallpur.
Prior to the British making the area into an urban centre, it largely consisted of various villages. However, the construction of various canals allowed the area to be irrigated. After the founding of the city, people were invited to the city with promises of land if they were to work it. This allowed the city to grow rapidly. In 1977 city was renamed Faisalabad in honor of King Faisal of Saudi Arabia.
The city of Lyallpur , multicoloured jewel of the lower Chenab organization area, came into being in 1880. The city which is now well known as "Manchester of Pakistan" for its industrial activity, was nothing but a desolate tract of land 100 years age. It did not rain here for weeks together and when it rained, the water vanished in the city land in no time. There was no village nearby.