[3] Batas Pambansa Bilang 86, approved on September 20, 1980, created the municipality out of Barangays Bunhian, Damag, Galonogon, Itab, Jacmal, Taang, Talete, and Ubao, from the Municipality of Mayoyao.

The area comprising Aguinaldo was formerly a part of Mayoyao called Bunhian.

In the 1970s, the leaders of the barrios of Bunhian, Galonogon, Ubao, Ta-ang, Jacmal, Damag, Talite and Itab, called for their separation from Mayoyao.

The town was named in honor of the Philippines' first president, Emilio Aguinaldo, who passed by the area while fleeing the Americans during the Philippine-American War.

Poverty incidence of Aguinaldo Source: Philippine Statistics Authority[12][13][14][15][16][17][18][19] Aguinaldo, belonging to the lone congressional district of the province of Ifugao, is governed by a mayor designated as its local chief executive and by a municipal council as its legislative body in accordance with the Local Government Code.