Lonavala derived its name from the Sanskrit word Lonavli, which means city surrounded by caves. The area around Lonavala was an important Buddhist center in 2nd century BC and a number of ancient Buddhist rock-cut cave temples can be found in this area. As Lonavala is located in the inhospitable terrain of the Sahyadri mountain range, it was not an important site in terms of history. Chattrapati Shivaji, the founder of the first Maratha Empire, ruled this area. Later it came under the Peshwa rulers, who founded the second Maratha Empire. It was finally taken over by the British when they defeated the Peshwas.
