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It is located in the southern part of Kolhapur district. It is a tehsil and subdivisional headquarters, as well as an important industrial town. Kagal has been mentioned in ancient texts such as "Ain-i-Akbari" by Abul Fazl, "Bharata's Natya Shastra", and the writings of Dnyaneshwar (1275–1296). The name Kagal or Kajgal appears to be derived from Sanskrit word 'kajjala' meaning 'black'. In olden days it was known for its black soil which was used for making pottery vessels. Hence this place came to be called Kagla or Kajgala later on corrupted into Kagal/Kagjalgad/Kaigalgad etc., finally becoming today's Kaigali(Marathi: कैगाळी) .