Literature and particularly the folk literature, narrates the political, religious, economic and social traditions of a society without any bias and prejudice. Folklore is an essential element of oral history to construct an alternative history. Folk literature reflects religious and socio-cultural traditions, concepts, festivals, customs, attitudes and habits, mode of life and behaviors of the people. Like literature of other languages, Punjabi literature is replete of historical events. This article is an attempt to trace out historical references from the Punjabi Sufi poetry and Punjabi folklore and it discusses relationship of folklore with the contemporary history.