Gwalior state was a semi-autonomous Maratha state. It was centred in modern-day Madhya Pradesh, arising due to the rise of the Maratha Empire and fragmentation of the Mughal Empire.

The Maratha Empire, also referred to as the Maratha Confederacy, was an early modern Indian empire and later a confederation that controlled large portions of the Indian Subcontinent in the 18th century. Maratha rule formally began in 1674 with the coronation of Shivaji of the Bhonsle dynasty as the Chhatrapati. Although Shivaji came from the Maratha caste, the Maratha empire also included warriors, administrators, and other nobles from the Maratha and several other castes from what is known today as Maharashtra. The Maratha Kingdom was expanded into a full-fledged Empire in the 18th Century under the leadership of Peshwa Bajirao I.