Consequently, in 1864 an extension of the railway was planned in order to bring the sugar from the Camajuani valley to Caibarien and a new settlement began near the train station.

Main economic activity is agricultural in nature, sugarcane and high quality tobacco have been key.

The foundation of the town was a natural consequence of the establishment of train station constructed by "Ferrocarriles Unidos de Caibarién", (United Railways of Caibarién) in 1864, this node connected the valley where the city now is with the port in Caibarien at the North, Santa Clara on the South, Vega Alta and Placetas west and east respectively.

Camajuaní along with Remedios, Vueltas, Taguayabón and Caibarien, all located in the same region and just few kilometers from one each other are famous due to the parrandas, a carnival like party with origins date back to the 18th century.

Every Parranda has its own difference in every town, but they share some similarities as well; like division of the population in two neighborhoods that compete each year in best decorative flat, plaza works or "Wall of lights" (a structure meant to support a display of lights or fireworks), traditional dance and fireworks display.