Ahilyabai was born on May 31, 1725. Her father was a Patil of village Choundi. She had five brothers. Several monuments have been built at Choundi, both by Ahilyabai and by others. There is a ghat in the river and a temple in the village has been built called Ahileshwar Mahadev. A moorthy of Ahilyabai stands worshipping Shiva.

Malhar Rao Holkar had the biggest influence on Ahilyabai and was her mentor too. He was the one who spotted the young Ahilyabai and brought her to Indore as his daughter-in-law. He would make Ahilyabai his successor in royal matters, even though she was never formally the Subedar. He taught her statecraft and integrity. He trained Ahilyabai in horse riding and archery along with other Sons he had sired. Malhar Rao himself was from a shepherd family. He was enrolled in the army and gathered fame with his fighting capabilities.

Ahilyabai was married to Khande Rao when she was eight. She moved into Malharao’s house in Indore. Malhar Rao saw great potential in her and trained her in accounting, finance, statecraft, history, horse riding etc.

None of the male members of Ahilyabai’s family survived her. Her adopted son Tukoji and his sons survived her.

Ahilyabai lived through the glorious era of Bajirao Peshwa. She later on witnessed the reign of Nanasaheb, Madhavrao and Narayanrao. She died during the reign of Swai Madhavrao Peshwa. Throughout her life, she remained a staunch loyalist of the Peshwas and rebuked attempts by rebels and British to defect.

Malhar Rao is considered as the founder of modern Indore. Indore was a small hamlet before he developed it. Malhar Rao made Indore his capital and built a principality on the banks of the river Kanh. He offered many incentives and facilities to traders, businessmen and artisans to migrate to Indore. He ordered the local Kanungo to populate the Kasba of Indore. He provided privileges to Sowkars and shokeepers from Ujjain.

After the death of her husband and son, Ahilyabai was drawn more and more towards spirituality. Yet, she was also conscious of the duty she had as Rajmata. She found peace on the banks of Narmada. It could serve as a capital and also satisfy her spiritual urges. She founded a new capital at Maheshwar i 1767 and spent 28 years of her life in Maheshwar. Her father in law Malhar Rao had already issued a warrant of protection in 1745 to the would be residents of Maheshwar with grants of land for houses for squires, carpenters, weavers and labour. There are more than sixty temples in Maheshwar. Maheshwar was known as Mahishmati in ancient India.

Ahilyabai invited skilled weavers from all parts of India to settle down in Maheshwar. She helped them financially to establish a business. She also bought the sarees and textiles they produced. She invited Sakharam Ghongde, an expert in silk textiles to Indore. Within four years, more than 100 weavers were making Maheshwari sarees and dhotis. Because of the encouragement given by Ahilyabai, quality sarees and clothes began to be produced in Maheshwar. Maheshwar was also known for vessel making and Maheswari Silver vessels became a speciality.

Ahilyabai is famous for the reconstruction of the Kashi Vishwanath temple, slightly away from the temple Aurangzeb destroyed. In 1785, she built this 51 feet high temple. She also renovated a ghat in varanasi. Her contributions to Varanasi are extensive. She built the Manikarnikaghat and a female only ghat at Manikarnika. She built 6 private temples, and Tarkeshwar temple. She built 9 private bungalows. She also established Brahmapuri as a colony of Brahmins.

Ahilyabai lived upto the age of 70 in her simple palace built like a hermitage in Maheshwar on the banks of Narmada. Santaji Holkar, the brother of Tukoji was at her side. Gifts and donations for the welfare of the passing soul were distributed. Her last moments were of quiet and calm. Ahilyabai’s favourite cow which she saw every morning also died alongwith her. A beautiful Chattri has been built at the spot of her cremation. John Malcom says of her life “It appears most extra-ordinary, how she had the mental powers to go through the labours she imposed on herself, from the age of 38 till death.”