The  Faridkot town is believed to have been founded and named as Mokalhar in the 12th Century by Raja Mokalsi (also called Mohkal Dev), the 9th descendent of Manjh from the clan of Jaisal Bhatti Rajput- who founded Jaisalmer. In the 13th century, the famous Sufi Saint Hazrat Baba Sheikh Farid on his way to Pakpattan (now in Pakistan) from Delhi happened to pass through this Princely State. Baba Farid was captured by the soldiers of Raja Mokalsi, and put to 'Begar' (Bonded Labour) for the ongoing construction-cum repair work of the fort. The basket full of earth while being carried by Saint Baba Sheikh Farid was seen floating over his head. The officials on duty immediately informed the Raja who rushed to see the 'miracle' himself. Realising his mistake of forcing a saint to 'Begar' , the Raja touched the feet of Baba Farid and begged pardon. The Baba pardoned the Raja and meditated at a place near the Fort, now known as 'Chilla Baba Farid' where he penanced for 40 days before proceeding to Pakpattan (now in Pakistan). From that day the name of Mokalhar was changed to FARIDKOT.

In the beginning the people used to organise a small function to commemorate the visit of Baba Farid to this town. It was during 1986, that North Zone Cultural Centre, Patiala organised Baba Farid Mela for the first time by involving the District Administration and various Social and Cultural Organisations of this area. Since then the 'Aagman Purb' of Baba Sheikh Farid is being regularly organised by 'The Faridkot District Cultural Society' with the co-operation of different Govt./ Non Govt. Organisations.