The early history of Kadmat is intertwined with the broader history of the Lakshadweep archipelago. Oral traditions suggest that the first settlements in the region occurred during the reign of the Chera dynasty in Kerala. The islanders eventually converted to Islam, a transition historically attributed to the arrival of the Arab saint Ubaidullah in the 7th century, whose influence spread across the islands.
During the medieval period, Kadmat and its neighboring islands fell under the control of the Arakkal kingdom of Kannur—the only Muslim principality in Kerala. The islanders endured heavy taxation and trade monopolies under Arakkal rule. In the late 18th century, control of the Amindivi group of islands, including Kadmat, was ceded to Tipu Sultan of Mysore in an effort to find relief from Arakkal oppression. Following Tipu Sultan's defeat in 1799 at the hands of the British East India Company, Kadmat was annexed by the British and attached to the South Kanara district of the Madras Presidency.
Following India's independence in 1947, the archipelago was organized into a separate Union Territory in 1956, eventually named Lakshadweep in 1973. Modern history on Kadmat has been defined by state-sponsored efforts to improve living standards without destroying the fragile ecology. The late 20th and early 21st centuries saw the introduction of government educational institutions, desalination plants, and carefully managed eco-tourism resorts, bringing gradual economic evolution to the isolated community.