Before European and Indian settlement, the Andaman Islands were solely inhabited by indigenous tribes. Mayabunder's modern history began to take shape during the British colonial period. In the 1920s, the British brought members of the Karen community from Burma (now Myanmar) to the Andaman Islands to work as cheap laborers in the region's dense logging camps. Many of these Karen laborers settled in the forests around Mayabunder, founding villages like Webi.
Following India's independence in 1947 and the partition of India, the Indian government sought to populate and develop the Andaman Islands. During the 1950s and 1960s, a significant influx of settlers arrived in Mayabunder, predominantly refugees from East Pakistan (now Bangladesh) as well as migrants from mainland Indian states like West Bengal, Tamil Nadu, and Andhra Pradesh.
In August 2006, the Andaman and Nicobar administration reorganized its districts, and Mayabunder was designated as the headquarters of the newly formed North and Middle Andaman district, significantly boosting its administrative importance and local infrastructure.
