The Khajuraho temples were built during the reign of the Chandellas, either by themselves or their Chieftains and Jain Merchants. These were built over a period of 250 years, between 900 AD and 1150 AD. The Chandellas were originally vassals to the Pratiharas of Kanauj.

The region acquired the name `Jejakabhukti`, named after the Chandella chief Jeja, or Jayashakti, the third in the genealogy of Chandellas and eventually, by the middle of the tenth century the Chandellas had become independent. It was in this period, the period during which the Chandellas, who were Vassals, became an established power in the north, the site of Khajuraho gained importance. Though varied from time to time, the area of Jejabhukti roughly comprised of, what is now known as Bundelkhand. This territory was surrounded by water on all four sides, i.e. On the north lay the Yamuna, on the south the Narmada, on the east the Tamasa and on the west the Chambal.

There is a beautiful legend in Bundelkhand which not only traces the origin of the Chandellas, but also explains the reason for the existence of such erotic sculptured temples in Khajuraho. According to the legend, Hemavati, a beautiful young Brahmin maiden had an affair with the Moon God. Out of this relationship a handsome boy was born, believed to be the sage Chandatreya, to whom the inscriptions trace the origin of the Chandellas, but they do not mention of this story. The moon god comforted Hemavati, who was worried about the future of the child born out of wedlock, and he divined that their son would be the first king of Khajuraho. The Moon god added that, he should perform Bhandya Yajna, a sacrificial ritual that included among its rites the depiction of erotic figures. He also said that the boy should build eighty-five temples at Khajuraho, carved with erotic figures as this would free his mother from the blemish of extramarital love.

From the inscriptions of the Chandellas, one can trace the family`s possible tribal connections. Several historians suggest their association with the Gonds and Bhar tribals, as they had family relations with the Gonds and also worshipped Maniya Devi, a tribal deity. Like every other royal clan, the Chandellas too, in order to enhance their status and prestige, built temples, water tanks, and gave gifts to Brahmins. The puranas have stressed on the fact that building temples, brought merit, fame and glory to the builder. Apart from Khajuraho, Temples and water tanks have been constructed by the Chandellas at Mahoba, Dudhahi, Devgadh, Madanpur, Kalanjar, and Ajaygadh.

The Chandellas considered Khajuraho very special, as they concentrated most of their temple building activity here. The temples built by them when they were still feudatories, were made of rough granite, and built on the outskirts of Khajuraho. The Chausath Yogini temple and the Shiva temple, called Lalguan Mahadeva belonged to this category.

Harshadeva,(905 AD - 925 AD) sixth in the Chandella genealogy, fought and defeated the Rashtrakuta King Krishna II, who was a threat to his Pratihara overlord Kshitipaladeva, whom Harshadeva reinstated as the King of Kanauj, in 917 AD . This event has been recorded in a stone inscription at Khajuraho, near the Vamana temple. The recently excavated brick complex in the northeastern area of the site, and the `Brahma` temple on the bank of the Khajursagar lake, can be associated with Harshadeva.

Yashovarman (AD 925-950), the son of Harshadeva, established the Chandellas as an independent power. The prestigious Vaikuntha-Vishnu image was acquired by Yashovarman from his Pratihara overlord Devapala, and celebrated this victory by building a magnificent temple at Khajuraho. This temple is the first in the Nagara style at Khajuraho, and he embellished it abundantly with sculptures. Now known as the Lakshmana temple, this temple is made of finely grained sandstone brought from the quarries near Panna, not far from Khajuraho. One inscription of this temple declares the conquest of the strategic fort of Kalanjar by Yashovarman. After conquering Kalanjar, Yashovarman began calling himself `Lord of Kalanjar` (Kalanjaradhishwara). Yashovarman further asserted his power by installing a huge icon of the boar incarnation of Vishnu, which depicts a boar rescuing mother earth in front of the Lakshmana temple. This is a metaphor which symbolizes the king saving the earth, by conquering enemies.

King Dhangadeva (c. AD 950-999), son of Yashovarman, was the first independent Chandella ruler, who refused to acknowledge the Pratiharas his overlord. He ruled over a vast stretch between the Yamuna and Narmada rivers. He installed two lingas, one made of emerald and the other of stone, in the temple then called Marakateshvara (Lord of Emerald), and now known as the Vishvanatha temple. The temple was consecrated in AD 999, after Dhangadeva`s death. Dhangadeva ruled for nearly fifty years.

Vidyadhara (AD 1003-1035), The grandson of Dhangadeva, is known for his firm resistance to the raids of Mahmud Ghazni. The famous Historian of those times, Ibnul-Athir described as the most powerful Indian ruler of his time. To celebrate his victory over Mahmud Ghazni, the grandest temple at Khajuraho, the Kandariya Mahadeva, was built.

Vijayapala (1035 AD - 1050 AD) and Devavarman (1050 AD - 1060 AD) lost a few of the territories. Kirtivarman (AD 1060-1100), the successor of Devavarman re-established Chandella suzerainty after defeating the Chedi king of Jabalpur. An allegorical play Prabodhachandrodaya written by the court poet Krishna Mishra was staged by him to celebrate his victory. Extreme Tantric sects like the Kapalikas are being ridiculed in the play. The king temples at Mahoba, Kalanjar, and Ajaygadh, were built by Kirtivarman. The first Chandella coins were issued in his reign.

The next important ruler is Jayavarman (c. AD 1110-1120). He carried out renovation work at Khajuraho and there is a possibility that he might have built the Chaturbhuja temple, which is known for its exquisite Vishnu image. In an inscription, he is described as a great devotee of Lord Narayana.

The last known great Chandella ruler is King Madanavarman (c. AD 1128-1165) He is believed to have built the Duladeva temple, the last towering monument at Khajuraho.

The grandson of Madanavarman, Parmardideva (c, AD 1165-1203), was a patron of poets and a scholar. Annals from the Prithviraj raso and the Paramal Raso speak about his enmity with the legendary Prithviraj Chauhan. In 1202 AD, he was defeated by Qutbuddin Aibak. Following this defeat, the power of the Chandellas declined in the thirteenth century.

The Temple-town of Khajuraho flourished and prospered with the rise in power of the Chandellas. Apart from commissioning temples and water tanks, the Chandellas encouraged music, dance and literature. There are inscriptions which praise King Dhangadeva for his learning and for his discernment of various arts. King Gandadeva and King Paramardideva were poets par excellence. A Sanskrit poem on Shiva and Parvathi, composed by Paramardideva, was inscribed on the Nilakantheshvara temple at Kalanjar at in AD 1201.Sanskrit Plays composed by court poets would be staged during religious festivals and fairs. The elite highly appreciated the knowledge of the Sanskrit language and this culture can be seen through Khajuraho`s visual arts.