Gojra town was established in 1896 when colonization of Lyallpur (Faisalabad) began. The  railway line between Lyallpur and Gojra was laid in 1899. The town was given the status of  notified area committee in 1904 and upgraded as B-Class Municipality in 1925. In 1906 the  population was 2,589, according to The Imperial Gazetteer of India "The business done in this    rising mart on the railway, which has sprung into existence in the last six years owing to the extension of the Chenab Canal to the surrounding country, bids fair to rival in importance that of Lyallpur itself".

In 1919 following the Rowlatt Act, hartals broke out throughout Punjab, Gojra was affected by serious protests and a member of the Church Mission Society had to be escorted out of the town by loyal residents.

After independence from Britain, in view of its increasing size, it was declared as 2nd class Municipal Committee in 1960. The town was raised to the status of Tehsil town and affiliated with the newly established district Toba Tek Singh on 01.07.1982. After the introduction of Devolution of Powers Plan, the Municipal Committee Gojra came into being on 12.08.2001. Canal rest house is the oldest building constructed during British government in 1898