The early history of Tezu is deeply intertwined with the indigenous Mishmi people, who have lived in the Lohit River valley and surrounding hills since antiquity. The region also holds ancient significance in Hindu mythology; the nearby Parasuram Kund is believed to be the site where the sage Parasuram washed away his sins, making it a prominent pilgrimage destination for centuries.
During the British colonial era, the area remained largely unadministered, functioning as a frontier tract. After India's independence in 1947, the region was incorporated into the North-East Frontier Agency (NEFA). Tezu was developed as an administrative center to establish a formal governmental presence and improve connectivity in the remote eastern Himalayas.
Following the 1959 Tibetan uprising and the Dalai Lama's flight to India, a wave of Tibetan refugees arrived in the area. In the early 1960s, the Government of India established a Tibetan settlement in Tezu (often referred to as Lama Camp or Tindolong), which brought new cultural and economic dynamics to the town.
Modern history in Tezu has been defined by a push for integration and development. The 1962 Sino-Indian War highlighted the strategic vulnerability of Arunachal Pradesh, leading to a long-term buildup of military and road infrastructure. In recent years, the town has transitioned from a remote outpost to a well-connected district capital.
