The oldest evidence of life in Pakistan has been found in Soan River valley. It was here that some of the earliest signs of humans have been discovered during the excavations of prehistoric mounds. Tools up to two million years old have been recovered in potohar plateau. In the Soan River, many fossil bearing rocks are exposed on the surface. 14 million year old fossils of gazelle, rhinoceros, crocodile, giraffe and rodents have been found there.

Punjab during Mahabharata times was known as Panchanada. Punjab was part of the Indus Valley Civilization, more than 4000 years ago.

The main site in Punjab was the city of Harrapa. The Indus Valley Civilization spanned much of what is today Pakistan and eventually evolved into the Indo-Aryan civilization. The Vedic civilisation flourished along the length of the Indus River. This civilization shaped subsequent cultures in South Asia and Afghanistan. Although the archaeological site at Harappa was partially damaged in 1857 when engineers constructing the Lahore-Multan railroad used brick from the Harappa ruins for track ballast, an abundance of artefacts have nevertheless been found. Punjab was part of the great ancient empires including the Gandhara Mahajanapadas, Achaemenids, Macedonians, Mauryas, Kushans, Guptas and Hindu Shahi. It also comprised the Gujar empire for a period of time, otherwise known as the Gurjara-Pratihara empire. Agriculture flourished and trading cities (such as Multan and Lahore) grew in wealth.

The city of Taxila, founded around 1000 BCE, was reputed to house the oldest university in the world,[citation needed] Taxila University. One of the teachers was the great Vedic thinker and politician Chanakya. Taxila was a great centre of learning and intellectual discussion during the Maurya Empire. It is a UN World Heritage site, valued for its archaeological and religious history.