It is classified as a third class municipality and mere dependent on agriculture such as coconut, rice and corn farming.

The town of Dagami is famous for its local delicacies called binagól (a distinct dessert made from sweetened large mashed taro called talian packed inside a leaf-covered coconut shell), and morón (a kind of sweetened rice cake, optionally added with peanuts or chocolate wrapped inside a banana leaf) and sagmani.

Having felt insulted, one of the civil guards shouted angrily in Spanish, "Dagami or Dawian makes no difference!

When the Spanish conquistadors arrived in Leyte in 1521, trade mostly took place in the villages bordering the sea, where Dagilan was located.

Ablen claimed to have supernatural powers and sold anting-anting that would render one invisible to the enemy and holy oil that could cure any ailment.

Its mountain ranges served as cover for the Japanese between their base in Ormoc City as the American forces were advancing during liberation.

Dagami became the provincial capital of Leyte when the administration transferred to the interior lands after Dulag was ransacked and burned down by the Moro pirates which were constantly pillaging coastal towns and villages on Philippine islands.

When the Jesuits mission first landed in the Philippines, they were assigned to evangelize the island of Leyte and Samar and were allowed to establish their first rectory in Dagami.

This made the town a cabicera or the equivalent of provincial capital since around that period Palo and Tacloban were not existing yet.

In 1957, the barrios of Capahu-an and Guingawan were transferred to the newly founded town of Tabontabon,[9] which used to be a barangay of Dagami.

Over the mountain range on Dagami's western upland part, it borders with Ormoc City on the northwest.

Chief economic products of the municipality are the following: Dagami's total Internal Revenue Allotment (IRA) for fiscal year 2009 is P49,212,979, placing the town at no.

This is on top of local revenue sources which are the business and real property taxes including levies, fees and other charges.

During the rainy season, when these rivers rise, the downtown or Poblacion is flooded causing damages to property.

But as the river rises higher than the dike, it overflows causing more water to flood the town center.

On approach to the town proper, the mountain is an imposing majestic hill where smokes billow from different parts like chimneys.

b At this time, after the People Power Revolution, President Corazon Aquino forced the resignation of all local government unit heads and appointed officers in charge in their place.

The center of the seal shows the town's Municipal Hall (above), the seat of Dagami's local government.

With the implementation of K-12 reform for basic education, a separate campus for senior high school program was established in another location.

A tertiary training institute in Patoc was attempted but was short-lived due to lack of funding as it was run privately by the local parish.

The Huron Institute which opened as a vocational training center assisted by the Technical Education and Skills Development Authority or TESDA, closed down after a couple of years in operation with some of its graduates gainly employed afterwards.