Diglipur, originally inhabited by indigenous tribes, witnessed the arrival of settlers during British colonial rule. The area played a significant role during World War II when it was occupied by the Japanese. Post-independence, Diglipur gradually developed into a tourist destination, attracting visitors with its natural beauty and unique attractions like the mud volcanoes. The region's history is intertwined with the overall history of the Andaman and Nicobar Islands, reflecting the influence of various cultures and historical events.