The prefix "Rae" represents "Rai" the common title of the Kayasths and manihar who were masters of the town for a considerable period of time,some famous Kayasths are Rai Saheb Naseerabad, Kali Sahay Saheb, Dr.Shankar Dayal etc. Raja Har Parshad, Kayasth, a native of this town from Naseerabad, was the Nazim or Commissioner of Khairabad Division during the reign of the ex-king. He joined the mutineers and went up to Naipal with Begum Hazrat Mahal of Oudh dynasty and On 31 December 1858 while returning back after leaving her safe, he was killed in a battle with British army. The district of Rae Bareli was created by the British in 1858, and is named after its headquarters town. In the early 20th century, the town was an important center of trade, and Muslin and Cotton weaving.