Historically part of the Kadathanadu kingdom in northern Kerala, Mahe's modern history was shaped profoundly by European colonial ambitions. In 1724, André Mollandin, acting for the French East India Company, secured a trading post at the mouth of the Mayyazhi River. Over the next century, Mahe changed hands between the French and the British several times due to the Carnatic Wars and wider global conflicts, but it was ultimately restored to France following the 1814 Treaty of Paris.
Under French rule, Mahe developed a unique Indo-French culture, serving as an important port on the Malabar Coast. The town was governed by a French administrator and featured French schools, courts, and colonial bungalows that lined the riverbank.
The struggle for Indian independence sparked a parallel movement in Mahe, leading to a vibrant freedom struggle. In 1954, an uprising led by local leaders and the Mahajana Sabha successfully overthrew the French administration in what is known as the "Mayyazhi Mahotsavam." Mahe formally integrated into the Republic of India as part of the Union Territory of Puducherry in 1962, ensuring its unique administrative status to this day.