Established in 1716, the Sikh Confederacy marked the rise of Sikh political and military power in the Punjab region. The confederacy developed as a direct response to the persecutions of Sikhs by the Mughal Empire - specifically after the defeats of Guru Gobind Singh, and Banda Singh Bahadur. It was formed by 12 loosely aligned Sikh warrior groups, each called a ‘Misl', and led by its own leader.

The term Misl rose in Punjab during the 1700s, alongside the confederacy. It is derived from the Persian word Masl - مثل, meaning equal or alike. In the context of the Sikh Confederacy, a misl referred to an independent military unit of warriors who banded together under a common leader, with each misl functioning as an individual entity but operating alongside all the others. There were twelve major misls, with notable ones being the Bhangi, Ramgarhia, Ahluwalia, Phulkian, and Sukerchakia misls.

The confederacy operated as a decentralised structure where each misl governed its own territory independently, with no overarching central authority - e.g., a king. Despite this independence, the misls shared common goals which were based on Sikh principles, and they often came together for collective defence or joint military campaigns.

During this time, the Sikh Confederacy made significant territorial gains, particularly in the Punjab region. As Mughal authority declined, Sikhs filled the power vacuum, seizing control of strategic towns, cities, and forts. Their tactics primarily involved guerrilla warfare - small groups using surprise attacks against larger armies. They mostly used soldiers on horseback, and hit-and-run attacks. This made them highly effective against both Mughal and Afghan forces. The misls also successfully repelled invasions from Ahmad Shah Durrani (also known as Ahmad Shah Abdali), who attempted multiple invasions of northern India during the 18th century.

The most prominent figure to emerge from this period was Maharaja Ranjit Singh. Born in 1780 in Gujranwala and a member of the Sukerchakia misl, he is credited with unifying the misls and establishing the Sikh Empire in 1799 - marking the end of the confederacy. Ranjit Singh capitalised on the internal divisions and declining power of both the Mughals and Afghans, consolidating Sikh territories under his rule. He captured Lahore in 1799, making it the capital of the Sikh Empire, and eventually brought all the misls under a single, centralised administration.

During his reign, the Sikh Empire became a major power in the Indian subcontinent during the early 19th century.

The Sikh Confederacy laid the groundwork for the future of Sikh sovereignty in Punjab. It represented a time of resistance, resilience, and eventual resurgence, forming the basis of what would become a unified and powerful Sikh state under Ranjit Singh’s leadership.