A popular etymology derives the word "Telangana" from Trilinga desa ("land of three lingas"), a region so-called because three important Shaivite shrines were located here: Kaleshwaram (in present day Telangana), Srisailam and Draksharama (in present day Andhra Pradesh). According to Jayadhir Thirumala Rao, a former director of Andhra Pradesh Oriental Manuscripts Library and Research Centre, the name Telangana is of Gondi origin. Rao asserts that it is derived from "Telangadh", which according to him, means "south" in Gondi and has been referred to in "Gond script dating back to about 2000 years".

One of the earliest uses of a word similar to Telangana can also be seen in a name of Malik Maqbul (14th century CE), who was called the Tilangani, which implies that he was from Telangana. He was the commander of the Warangal Fort (Kataka Pāludu).

A 16th-century travel writer, Firishta, recorded in his book:

• During the just reign of Ibrahim Kootb Shah, Tulingana, like Egypt, became the mart of the whole world. Merchants from Toorkistan, Arabia, and Persia resorted to it; and they met with such encouragement that they found in it inducements to return frequently. The greatest luxuries from foreign parts daily abounded at the king's hospitable board.
• The word "Telinga" changed over time to "Telangana" and the name "Telangana" was designated to distinguish the predominantly Telugu-speaking region of the erstwhile Hyderabad State from its predominantly Marathi-speaking one, Marathwada. After Asaf Jahis ceded the Seemandhra region to the British, the rest of the Telugu region retained the name Telangana and the other parts were called Madras Presidency's Circars and Ceded.

The Satavahana dynasty (230 BCE–220 CE) became the dominant power in this region. It originated from the lands between the Godavari and Krishna rivers and was based at Amaravathi and Dharanikota. After the decline of the Satavahanas, various dynasties, such as the Vakataka, Vishnukundina, Chalukya, Rashtrakuta and Western Chalukya, ruled the area.

The Telangana area experienced its golden age during the reign of the Kakatiya dynasty, which ruled most parts of the present-day Andhra Pradesh and Telangana from 1083 to 1323 CE. Rudrama Devi and Prataparudra II were prominent rulers from the Kakatiya dynasty. The dynasty weakened with the attack of Malik Kafur in 1309 and was dissolved after the defeat of Prataparudra by the forces of Muhammad bin Tughluq in 1323.

The area came under the rule of the Delhi Sultanate in the 14th century, followed by the Bahmani Sultanate. Quli Qutb Mulk, a governor of Golconda, revolted against the Bahmani Sultanate and established the Qutb Shahi dynasty in 1518. On 21 September 1687, the Golconda Sultanate came under the rule of the Mughal emperor Aurangzeb after a year-long siege of the Golconda fort.

During the early seventeenth century a strong cotton-weaving industry existed in Telangana. Large quantities of cotton were produced for domestic and exports consumption. High quality plain and patterned cloth made of muslin and calico was produced.

When India became independent from the British Empire in 1947, the Nizam of Hyderabad did not want to merge with the Indian Union and wanted to remain independent. The Government of India annexed Hyderabad State on 17 September 1948 after a military operation called Operation Polo. It appointed a civil servant, M. K. Vellodi, as first chief minister of Hyderabad State on 26 January 1950. He administered the state with the help of English-educated bureaucrats from the Madras and Bombay states, who were familiar with British systems of administration unlike the bureaucrats of Hyderabad State who used a completely different administrative system. The official language of the state was switched from Urdu to English.

The Telangana Rebellion was a peasant revolt supported by the communists. It originated in the Telangana regions of the Hyderabad State between 1946 and 1951, led by the Communist Party of India (CPI).

The revolt began in the Nalgonda district against the feudal lords of Reddy and Velama castes. It quickly spread to the Warangal and Bidar districts. Peasant farmers and labourers revolted against the local feudal landlords (jagirdars and deshmukhs) and later against the Nizam Osman Ali Khan. The violent phase of the movement ended after the government of India's Operation Polo. Starting in 1951, the CPI shifted to a more moderate strategy of seeking to bring communism to India within the framework of Indian democracy.

In December 1953, the States Reorganisation Commission (SRC) was appointed to form states on a linguistic basis. An agreement was reached between Telangana leaders and Andhra leaders on 20 February 1956 to merge Telangana and Andhra with promises to safeguard Telangana's interests. After reorganisation in 1956, the region of Telangana was merged with Andhra State to form Andhra Pradesh.

Following this Gentlemen's agreement, the central government established the unified state of Andhra Pradesh on 1 November 1956. G.O 553 of 1959 from the united Andhra Pradesh state moved two revenue divisions of Bhadrachalam from East Godavari and Aswaraopeta from West Godavari to Khammam for administrative convenience.

There have been several movements to revoke the merger of Telangana and Andhra, major ones occurring in 1969, 1972, and 2009. The movement for a new state of Telangana gained momentum in the 21st century by an initiative of Kalvakuntla Chandrashekhar Rao from Telangana Rasthra Samithi later joined by Telangana Political Joint Action Committee, TJAC including political leadership representing the Telangana area. On 9 December 2009 the government of India announced the process of formation of the Telangana state. Violent protests led by people in the Coastal Andhra and Rayalseema regions occurred immediately after the announcement, and the decision was put on hold on 23 December 2009.

The movement continued in Hyderabad and other districts of Telangana. There have been hundreds of claimed suicides, strikes, protests and disturbances to public life demanding separate statehood.

On 30 July 2013, the Congress Working Committee unanimously passed a resolution to recommend the formation of a separate Telangana state. After various stages the bill was placed in the Parliament of India in February 2014. In February 2014, Andhra Pradesh Reorganisation Act, 2014 bill was passed by the Parliament of India for the formation of Telangana state comprising ten districts from north-western Andhra Pradesh. The bill received the assent of the president and published in the Gazette on 1 March 2014.

Telangana is situated on the Deccan Plateau, in the central stretch of the eastern seaboard of the Indian Peninsula. It covers 112,077 square kilometres . The region is drained by two major rivers, with about 79% of the Godavari River catchment area and about 69% of the Krishna River catchment area, but most of the land is arid. Telangana is also drained by several minor rivers such as the Bhima, the Maner, the Manjira,d the Musi, and the Tungabhadra.

Telangana is a semi-arid area and has a predominantly hot and dry climate. Summers start in March, and peak in May with average high temperatures in the 46 °C (115 °F) range. The monsoon arrives in June and lasts until September with about 755 mm of precipitation. A dry, mild winter starts in late November and lasts until early February with little humidity and average temperatures in the 22–23 °C (72–73 °F) range.

The Central Deccan Plateau dry deciduous forests ecoregion covers much of the state, including Hyderabad. The characteristic vegetation is woodlands of Hardwickia binata and Albizia amara. Over 80% of the original forest cover has been cleared for agriculture, timber harvesting, or cattle grazing, but large blocks of forest can be found in Nagarjunsagar-Srisailam Tiger Reserve and elsewhere. The more humid Eastern Highlands moist deciduous forests cover the Eastern Ghats in the eastern part of the state.

Telangana has three National Parks: Kasu Brahmananda Reddy National Park in Hyderabad district, and Mahavir Harina Vanasthali National Park and Mrugavani National Park in Ranga Reddy district.

Wildlife Sanctuaries in Telangana include Eturunagaram Wildlife Sanctuary and Pakhal Wildlife Sanctuary in Warangal District, Kawal Tiger Reserve and Pranahita Wildlife Sanctuary in Adilabad district, Kinnerasani Wildlife Sanctuary in Khammam district, Manjira Wildlife Sanctuary in Medak district, Nagarjunsagar-Srisailam Tiger Reserve in Nalgonda and Mahbubnagar districts, Pocharam Wildlife Sanctuary in Medak and Nizamabad districts, Shivaram Wildlife Sanctuary in Karimnagar district.

Telugu one of the classical languages of India is the official language of Telangana and Urdu is the second official language of the state. About 75% of the population of Telangana speak Telugu and 12% speak Urdu. Before 1948, Urdu was the official language of Hyderabad State, and due to a lack of Telugu-language educational institutions, Urdu was the language of the educated elite of Telangana. After 1948, once Hyderabad State joined the new Republic of India, Telugu became the language of government, and as Telugu was introduced as the medium of instruction in schools and colleges, the use of Urdu among non Hyderabadi Muslims decreased. Both Telugu and Urdu are used in services across the state, such as the Telangana Legislature website, with Telugu and Urdu versions of the website available, as well as the Hyderabad metro, wherein both languages are used on station names and signs along with English and Hindi.

The Urdu spoken in Telangana is called Hyderabadi Urdu, which in itself is a dialect of the larger Dakhini Urdu dialects of South India. Although the language is orally spoken by most Hyderabadi Muslims, the language in a literary context has long been lost, and standard Urdu is used. Hindi is spoken mainly in Hyderabad, as well as some other urban areas like Warangal. Lambadi, a language related to Rajasthani dialects, is spoken throughout the state. Marathi is predominant in regions bordering Maharashtra, especially in the old Adilabad district, while Kannada is spoken by significant minorities along some parts of the Karnataka border. The old Adilabad district has a large number of speakers of tribal languages such as Gondi and Kolami, while Koya is a language spoken by significant numbers in Bhadradi Kothagudem district and along the Chhattisgarh border.

According to the 2011 census, Hindus form 85.1% of the State's population. Muslims form 12.7% and Christians form 1.3% and 0.9% others.

The economy of Telangana is mainly driven by agriculture. Two important rivers of India, the Godavari and Krishna, flow through the state, providing irrigation. Farmers in Telangana mainly depend on rain-fed water sources for irrigation. Rice is the major food crop. Other important crops are cotton, sugar cane, mango, and tobacco. Recently, crops used for vegetable oil production such as sunflower and peanuts have gained favour. There are many multi-state irrigation projects in development, including Godavari River Basin Irrigation Projects and Nagarjuna Sagar Dam, the world's highest masonry dam.

The state has also started to focus on the fields of information technology and biotechnology. Telangana is one of top IT-exporting states of India. There are 68 Special Economic Zones in the state.

Several major manufacturing and services industries are in operation mainly around Hyderabad. Automobiles and auto components, spices, mines and minerals, textiles and apparels, pharmaceutical, horticulture, and poultry farming are the main industries in Telangana.

In terms of services, Hyderabad is nicknamed "Cyberabad" due to the location of major software industries in the city. Prior to secession, it contributed 10% to India's and 98% to Andhra Pradesh's exports in the IT and ITES sectors in 2013 With Hyderabad in the front line of Telangana's goal to promote information technology in India, the city boasts the HITEC City as its premier hub. IT companies have also been set up in Warangal and Khammam.

Telangana State Tourism Development Corporation (TSTDC) is a state government agency which promotes tourism in Telangana. Telangana has a variety of tourist attractions including historical places, monuments, forts, waterfalls, forests and temples.