Fox Bay West was once as large as FBE, but since the farm was subdivided and sold off in 1985 the number of residents has diminished.

During the Falklands War, Fox Bay was occupied by Argentine troops, around 900 men from 8th Motorised Infantry Regiment and elements of 9th Engineer Company.

Fox Bay was strafed and bombed by British Harrier aircraft and bombarded by the Royal Navy several times during the war.

Human casualties were low, but there was a major hit on the Argentine vessel ARA Bahía Buen Suceso, which happened to be moored at Fox Bay East at the time of the first British Harrier raid.

Bahía Buen Suceso was a 5,000-ton fleet transport that was serving as a logistic ship, intended to resupply the scattered Argentine garrisons around the islands.

They succeeded in damaging the ship's bridge and engine room, and also setting fire to a paint store and workshop ashore.

One of the Harriers was hit in the tail by a 7.62 mm calibre bullet while strafing the transport, though the aircraft was able to return to Hermes safely.