Budhlada derives its name after two brothers, Budha and Ladha, who once lived in this place – then a village. It was a part of the Kaithal state before the British wrested control of the town in 1857. Before the partition of India, Budhlada was the biggest market in East Punjab.

Nearest airport is at Ludhiana. Budhlada Railway Station is situated on the Delhi-Bathinda line of North Western Railways.