Shams-ud-Din Shah Mir (reigned 1339–42) was the first Muslim ruler of Kashmir[38] and founder of the Shah Mir dynasty.[38][39] Kashmiri historian Jonaraja, in his Dvitīyā Rājataraṅginī mentioned Shah Mir was from the country of Panchagahvara (identified as the Panjgabbar valley between Rajouri and Budhal), and his ancestors were Kshatriya, who converted to Islam.[40][41] Scholar A. Q. Rafiqi states:

Shāh Mīr arrived in Kashmir in 1313, along with his family, during the reign of Sūhadeva (1301–20), whose service he entered. In subsequent years, through his tact and ability, Shāh Mīr rose to prominence and became one of the important personalities of the time. Later, after the death in 1338 of Udayanadeva, the brother of Sūhadeva, he was able to assume the kingship himself and thus laid the foundation of permanent Muslim rule in Kashmir. Dissensions among the ruling classes and foreign invasions were the two main factors which contributed towards the establishment of Muslim rule in Kashmir.[

Rinchan, from Ladakh, and Lankar Chak, from Dard territory near Gilgit, came to Kashmir and played a notable role in the subsequent political history of the Valley. All the three men were granted Jagirs (feudatory estates) by the King. Rinchan became the ruler of Kashmir for three years.

Shah Mir was the first ruler of Shah Mir dynasty, which had established in 1339 CE. Muslim ulama, such as Mir Sayyid Ali Hamadani, arrived from Central Asia to proselytize in Kashmir and their efforts converted thousands of Kashmiris to Islam and Hamadani’s son also convinced Sikander Butshikan to enforce Islamic law. By the late 1400s most Kashmiris had accepted Islam.

Kashmir’s economy is centred around agriculture. Traditionally the staple crop of the valley was rice, which formed the chief food of the people. In addition, Indian corn, wheat, barley and oats were also grown. Given its temperate climate, it is suited for crops like asparagus, artichoke, seakale, broad beans, scarletrunners, beetroot, cauliflower and cabbage. Fruit trees are common in the valley, and the cultivated orchards yield pears, apples, peaches, and cherries. The chief trees are deodar, firs and pines, chenar or plane, maple, birch and walnut, apple, cherry.

Historically, Kashmir became known worldwide when Cashmere wool was exported to other regions and nations (exports have ceased due to decreased abundance of the cashmere goat and increased competition from China). Kashmiris are well adept at knitting and making Pashmina shawls, silk carpets, rugs, kurtas, and pottery. Saffron, too, is grown in Kashmir. Srinagar is known for its silver-work, papier-mâché, wood-carving, and the weaving of silk.