It has its origins in an earlier settlement, Kilarrow, which until c. 1770 occupied the site of the present grounds of Islay House near Bridgend.

As part of his plans for improvements at Islay House,[4] Daniel Campbell the Younger initiated the construction of the new village in 1770, just after the completion of the new Kilarrow Parish Church, which was built in a unique circular shape.

Short Sunderland and Consolidated PBY Catalina flying boats operated from Loch Indaal.

Some of the wartime film Coastal Command was filmed in Bowmore - fictional name RAF Ferry Bay - and it features a shot of a Sunderland flying low over the main street of Bowmore and over Kilarrow Parish Church.

The RAF built a diesel power station close to the A846 road at the eastern end of Bowmore, to supply their facilities.