The name Nangal came from the name of village Nangal Nikku. Present Nangal is situated on the land of villages Nangal Nikku, Hambewal and Dubheta the land acquired from these small villages in 1948 when the construction of Bhakra Dam was planned on the Satluj River. The town is divided into three parts: Nangal, Nangal Township and Naya Nangal.