The origin of Lai Haroba dance can be attributed to a number of mythological instances. All Manipuri dances is said to be based on the physical movements of the great guru also regarded as the Creator, Sidaba. Later Sidaba and his consort Leimaren completed his creation of the Universe. Later on other gods and goddesses adapted the dance pattern for worshipping the great Guru. Gradually the dance was transmitted to the upcoming generations.

Another instance states that the Lai Haroba dance has originated from a Manipuri scripture Leithak Leikharole. According to the scripture the traditional dance of Manipur was Augri Hangel. In the scripture it is stated that the Great Guru had two sons named Kuptreng and Sentreng. The Guru declared that the first to succeed in going around the world would ascend to the royal throne. The elder son began his journey from the South. The younger son Sentreng while setting out for his journey was advised by his mother Leimaren Sidabi, to go round the throne of the Great Guru seven times. Sentreng did as he was advised and accomplished his task. His task illustrated his respect towards his father and as moving around the throne of the Creator signifies moving around the world he was crowned as the next king.

Kuptreng after his return when came to know about the Sentreng`s success was enraged. He immediately proceeded for a fight with him. Sentreng approached twelve nymphs created by the Great Guru who promised him protection. They formed a circle and took him inside it because of which Kuptreng could not see him. This dance in a circular fashion known as the Augri Hangel type of Manipuri dance was gradually handed down to the next generations. Later on he sensed the presence of his brother observing their chorus dance. Enraged he thrust his toe into the Earth to cause destruction. The Great Guru interfered and proclaimed that both the brothers would rule alternatively for twelve months.

We get another instance of the traditional Manipuri dancing from the Rasa Lila dancing of Lord Krishna and Radha. Once Lord Shiva and Parvati was in charge of the securing the gated of the pandal inside which Lord Krishna was engaged in performing the Rasa Dance.

The melodious tune in harmony with the jingling of the bells pleased Parvati. She became eager to witness it. When the request was not granted Shiv and Parvati decided it in another suitable place which was later known as Manipur. Here Shiv and Parvati performed their Ras along with many instruments like lute, `Pena`, and drum and others. Ananta (serpent king) also joined them in their dance.

Instances of Manipuri dance are also found in the episodes of Mahabharata. After the Ananta dynasty a new dynasty was formed which was headed by the Gandharva king. The king had a beautiful daughter. She was later married by Arjuna who was himself an artist par excellence. Arjuna had gained his knowledge of dance from the renowned dancer of Lord Indra`s court, Urvashi. These instances reveal the presence of dance among the inhabitants of Manipur.