Many years ago, El Palmar was nearly destroyed by a volcanic eruption of the Santiaguito volcano.

Nuevo El Palmar was founded a few kilometers away where most people re-settled.

The inhabitants were given the alternative to re-settle in El Nuevo Palmar by the Guatemalan government.

A few months later, the entire town was destroyed by another flood of mud from a volcanic eruption.

In October 2005 a bridge was destroyed here by Hurricane Stan, cutting off a large portion of the southwest region from the rest of the country.