It was a planned town, developed after canals were built for agricultural purposes and a railway line was established. Even today, the railway station at Sillanwali is known as "Sillanwali Mandi" in railway records. Before the Partition of India in 1947, Sillanwali was well known for the production of cotton. Most of the population were Hindu Khatris. After partition the Hindus migrated to India and their property was taken over by the Muslim Sheikhs (having Khatri Origin), most of whom had migrated from Karnal District of Haryana state which had been part of united Punjab but became part of Indian Punjab after 1947.