The territory was part of the domains of the Adil Shah of Bijapur. The city was shifted to a new location at Ela on the river Mandovi around 1420-40 as the Zuari was silting, affecting the marine trade.
The city under Adil Shah was prosperous. Enchanted by the settings, Adil Shah had built a castle at Panaji in 1500 and contemplated the city to be his second capital after Bijapur.