Kotli (Urdu: کوٹلی, Pahari-Potohari/Hindko/Pashto: کوٹلی) or Cotly, as known in Britain, is the chief town of Kotli District, in the Pakistani-administered Azad Jammu and Kashmir. Kotli is linked with Mirpur by two metalled roads, one via Rajdhani, (90 km) and the other via Charhoi. It is also directly linked with Rawalakot via Trarkhal (82 km) and a double road which links Kotli with the rest of Pakistan via Sehnsa, another major town in Azad Jammu and Kashmir. Kotli is roughly a three hours drive from Islamabad and Rawalpindi, at a distance of 117 km via Sehnsa.

As stated in History of the Punjab Hill States by J.Hutchinson and J.P. Vogel: "Kotli was founded about the fifteenth century by a branch of the royal family of Kashmir. Kotli and Poonch remained independent until subdued by Ranjit Singh in 1815 and 1819 respectively."

The royal family of Kashmir Hutchinson and Vogel are referring to is the family of Raja Mangar Pal. Before its name was Kohtali mean (under mountain) after that people changed its name to Kotli. Kotli was historically known as Kotli.