Rao Bhikaji was the sixth son of Rao Jodha, the founder of Bikaner. He left the kingdom of his father when he realized that his fortunes lay somewhere else. He founded Bikaner after pastoral Jats of Northern Rajasthan submitted to his authority in AD 1488.

According to the legends, Rao Bhikaji sought the blessings of Goddess Karni at Deshnoke before embarking on his campaigns. Karni Mata Temple is still being patronized by the erstwhile ruling family of Bikaner. Hundreds of pilgrims throng the temple every day throughout the year to seek the blessings of the Goddess, considered as an incarnation of Goddess Durga. An unusual feature of the temple is the innumerable rats that have made this temple their home. Rats of this temple are considered as the future incarnations of some mystic child of the temple deity.

Merchant banking and other trading activities were the major source of income for Bikaner till the British time. The city, together with Jaisalmer and Jodhpur was the part of a great inland trade route to Central and West Asia. Bikaner bore the burnt of Mughal attacks several times and earned reverence among its fellow Rajput states when it repulsed the onslaught of the Mughal army under emperor Aurangzeb.

After the decline of mighty Mughals in the nineteenth century, widespread anarchy came in India. Many princely kingdomsIn the nineteenth century, alarmed by the widespread anarchy brought about by the decline of the Mughals, many princely kingdoms turned to the English East India Company for security. Bikaner signed the instrument of agreement with the Company in AD 1818, along with other princely states in Rajasthan. Bikaner proved a true ally at the time of the AD 1857 revolt, Afghan War, and the Anglo Sikh Wars.