The Town located on the Bank of the Pakala River, which is one of the tributaries to the river Krishna. It is well known for its permanent historical and traditional importance’s. The majority of the villages and the hamlets including the Town are the habitats of scheduled tribes (STs). The tribal community is Lambadi. Thus, the majority of people of the Town will also communicate in the special tribal language, Lambadi or Banjara. This language is one among the officially recognized dialects by the Government of India. This language has no script but is sustained only on the oral spoken words.       

Mahabubabad comes from Manukota and also Manukota comes from Mranukota. In telugu “Mranu” means “Tree” and “Kota” means “Fort”. In English it will translate to “a fort made of trees”. In earlier days Manukota used to be covered with plenty of trees like a fort. Later it was spelled as Manukota. When ever the Nizam ruler “Mahabub Ali Khan” visited the city, Manukota changed as Mahabubabad. Mahabub who is one of the officials of Hon’ble Nizam. He once arrived Manukota before Independence and stayed outside of the town in a place which is called “Shikarkhana”. The name of Manukota by the passage of the time, hence changed to Mahabubabad.