In the leadership of Maharaja Ranjit Singh as a political power, Sikh Kingdom had · emerged. The Sikh chieftains had divided entire Punjab into 12 misls. Ranjit Singh united these misls and formed an independent state. Now he wanted to submerge the regions situated in the east of river sutlej, over which the British also wished to establish their dominance. For this issue, the treaty of Amritsar was signed between the British and Ranjit Singh in April 1809.

According to this treaty, dominance of the British was established upto Sutlej, and they became free from the terror of the Sikhs in the north. This made a negative impact on the stability of Sikh Kingdom. According to the tripartite agreement (Ranjit Singh, the British and Shahshuja) performed in 1838, Ranjit Singh accepted the mediation of the British in the issue of Sindh.

After the death of Ranjit Singh in 1839 and controversial atmosphere among the Sikh chieftains, the imperialistic ambitions of the British get strengthened. From 1845 to 1846, the first Anglo-Sikh war was fought and the result remained in favour of the British. Interference in politics and diplomatic nature of the British created anger among Sikhs, which resulted in the form of Second Anglo-Sikh war in 1848-49 CE. Sikhs were defeated in this war also.

Dalhousie made a declaration on 29th March 1849 and merged Punjab in the British Empire. Maharaja Dilip Singh was given pension. Kohinoor diamond and the state of Punjab were handed over to the British by Maharaja Dilip Singh and his security council.