Kalpeni's history is intertwined with the maritime trade routes of the Arabian Sea. Initially inhabited by people of Kerala and influenced by Arab traders, the island gradually adopted Islam. The island's economy was traditionally based on coconut cultivation, fishing, and coir production. In the past, it was under the rule of the Arakkal kingdom of Kannur before becoming part of British India. Post-independence, it became a part of the Union Territory of Lakshadweep. The island has witnessed gradual development in infrastructure, tourism, and education, while striving to preserve its unique cultural identity and ecological balance. The local traditions and customs, passed down through generations, reflect a harmonious blend of Indian and Arab influences, adding to the island's distinctive character.