Chaiyaphum, initially a settlement under Nakhon Ratchasima during the Ayutthaya period, reemerged as a significant town in the early Rattanakosin period. In 1817, Nai Lae, a Lao noble under Vientiane’s ruler King Anouvong, led a group of settlers to establish the area that is now Chaiyaphum. Nai Lae, later titled Khun Phakdi Chumphon, relocated his settlement multiple times to secure better resources. By 1826, he shifted allegiance from Vientiane to Bangkok, pledging loyalty to King Rama III and marking Chaiyaphum as part of Siam.

In 1827, as King Anouvong’s forces attempted to capture Bangkok by force, Nai Lae joined the resistance. Following the defeat of Anouvong’s troops at Nakhon Ratchasima, some Lao soldiers retaliated by attacking Chaiyaphum. Nai Lae, refusing to join Anouvong’s cause, was executed by Anouvong’s forces. Chaiyaphum’s people honored Nai Lae’s loyalty by constructing a shrine, known as the Phaya Phakdi Chumphon (Lae) Shrine, a prominent local landmark located 3 kilometers from the provincial hall.

Today, Chaiyaphum remains an important cultural site, with its rich history commemorated in local traditions and the revered shrine that celebrates Nai Lae’s unwavering loyalty and sacrifice.