Before Sikhism came into origin and the present city came to be known as Amritsar, legend has it that this was the place where, Luv and Kush, the twin sons of Lord Ram, got education and were taught the Ramayana by the learned sage V almiki.

Today Amritsar has evolved as a historical place and a religious hub of the Sikhs. A major part of the city's history revolves around the Golden Temple. Guru Ram Das is supposed to have selected the villages of Tung, Gumtala and Sutanwind to lay the foundation of a new village, which would be a centre for the congregation of Sikhs. Initially, a tank was dug that was completed by Guru Arjan Dev. On the orders of Guru Amar Das, Guru Ram Das then built the Guru ka Chak or the Guru's residence. This House is today known as the Guru ke Mahal (guru's palace). Guru Arjan Dev then invited traders, artistes and craftsmen to settle down in at this place. The place came to be known as Ramdaspur at that time. Later on when the sacred tank (Amrit Sarovar) was completed, Ramdaspur was renamed Amritsar.

Prior to independence, Lahore, which is now a part of Pakistan, and Amritsar were the major educational centers of the country. The Hindu College, Khalsa College, DAV College and many other institutes in Amritsar still enjoy universal repute.

Amritsar has also been a major centre of Indian independence struggle and the courageous people of the city actively participated in the freedom struggle. In AD 1947, the entire city of Amritsar strongly protested against the partitioning of Punjab between India and Pakistan and had to face riots and bloodshed for a long time that year.