The word Dipaculao was created while the Ilongots, the first inhabitants, were having thanksgiving festivities to commemorate the abundance of hunting and harvesting.

Another group of Ilocano settlers arrived from Ilocos Region, including La Union and Pangasinan.

[6][7] Other ethnic groups who came and stayed in Dipaculao include Christianized Gaddang and Isinai settlers who settled the surrounding lowlands of Baler Bay, Gaddang arrived from Nueva Vizcaya and Mountain Province and Isinai came from Nueva Vizcaya.

[8] On November 27, 1950, Dipaculao was converted from a barrio of Baler into an independent municipality of Quezon thru Executive Order No.

[10] On June 21, 1957, the sitios of Dimabuno, Laboy, Dinadiawan and Puangi were converted into barrios.