The Battle of Basoli was fought between Mughal Empire and the Sikhs. The Mughal army was defeated in the bloody Battle of Nirmohgarh (1702) earlier in the year. After the battle, Sikh Guru Gobind Singh moved to Basoli where combined forces of hilly rajas also crossed Satluj and Sikh army was attacked by hilly rajas under Raja Ajmer Chand. Guru Gobind Singh put up a formidable defence at Basoli. There, Sikhs fought with gallantry and once again the enemy forces failed to subdue Sikhs and Khalsa army forced the enemy to roll back by defeating them at Basoli too.
After the battle the combined forces withdrew to Sirhind and Raja Ajmer chand made a tactical peace with the Guru.