[3] The municipality derives its name from the bamban plants (Donax canniformis) that once dominated large areas of land along the river near the foothills.

The thick forest and mountains were then inhabited by the Aetas (locally known as Baluga), and the Zambal, both of whom subsisted only on fishing and native or wild animals which abounded in the place.

Northwest of the town situated among the hills are remnants of strongholds built by Bambanenses who joined Gen. Servillano Aquino in the uprising in Tarlac.

During the Commonwealth era, the Sibals, the Lumboys, the Santoses, the Punsalangs, to mention a few, enjoyed political power until the outbreak of World War II.

The 1991 eruption of Mount Pinatubo and the subsequent flow of lahar to the lowlands of Bamban forced residents to move out or to stay at the Dapdap Resettlement Area, which is on higher grounds.

In 2022, controversial businesswoman Alice Guo was elected as mayor, which saw significant developments in town, alongside a then suspected fast-rising Philippine Offshore Gaming Operator (POGO) hub.

She was suspended over suspected links to POGO related criminal activities and questions over her citizenship and was eventually dismissed from office by the Ombudsman.

The boundary is defined by the Parua River, which is a source of irrigation water, food, and sand and gravel for infrastructure projects.

The mountainous region situated in the western part comprises almost two-thirds of the total land area, which used to be within the US Military Reservations.