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During this new period of Bactrian Greek rule, several dynasties (like Antialcidas) likely ruled from the city as their capital.During lulls in Greek rule, the city managed profitably on its own, to independently control several local trade guilds, who also minted most of the city's autonomous coinage.

The archaeologist Alexander Cunningham rediscovered the ruins of Taxila in the mid-19th century.In later Buddhist texts, the Jatakas, it is specified that Taxila was the city where Aruni and his son Setaketu each had received their education.a Sanskrit grammar treatise dated to the 4th century BCE.He noted that it had some time previously been a subject of Kapisa.By the ninth century, it became a dependency of the Kabul Shahis.

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