Remains have been found of a prehistoric settlement in the Cave of Bats, located in the municipality, but Albuñol itself is believed to be of Roman origin.

The heyday of the Alpujarra was the Moors, at the time Albuñol contained the largest population of Great Cehel or Gran Costa.

In the sixteenth century Portocarrero Luis Zapata bought the population to the Crown, Dona Juana, also receiving the award of city status.

After the expulsion of the Moors in 1570 began the repopulation of the Alpujarra with Castile, Galicia and Leon, but Albuñol did not occur until the seventeenth century.

Among the traditions of the town is very Arriagada craft activities in the area such as manufacturing esparto or other materials.