Mulayam first became state minister in 1977 and became the president of Lokdal in 1980 that became a part of the Janata Dal (People's Party) later on. In 1982, Yadav was elected leader of the opposition in the Uttar Pradesh legislative council.
Ram Manohar Lohia was political guru of Mulayam singh Yadav. Mulayam was a camp follower of Raj Narain, who defeated Indira Gandhi from Rae bareli Parliamentary constituency in 1977. Chaudhary Charan Singh was another person who Mulayam admired immensely.
On October 7, 1992, Yadav founded his own political party named Samajwadi Party.