Birchy Bay was first home to the native people of the Island which would have used the river which flows through the community as a source of fresh water and also to procure salmon and trout.

The local lookout as known today was also recorded to have been used by the Beothuk and a large pine tree which grew at its summit was relieved of all its bark from the natives climbing to watch over the surrounding land.

The first recorded family to come and stay in Birchy Bay was Andrew Canning Sr. a man with unknown origins but came from Barr'd Islands to salmon fish.

Birchy bays chief income was the logging industry in the early 1900s the French family of Summerford opened a steam-powered sawmill procuring lumber from the country and driving it down the streams and brooks.

There has also been construction done at a popular swimming area called 'Deep Hole' to allow for easy family gatherings and summer activities.