[5] In 1154, the island was mentioned by Muhammad al-Idrisi as "Niyan" and described as "densely populated, with one big town, and inhabited by many tribes".

[6] Migration of Ono Niha people from mainland Sumatra occurred in around 1350; they brought with them knowledge of metallurgy, agriculture, husbandry, and woven clothing.

[5] In 1416, Ming treasure voyages led by Zheng He occupied a portion of mainland Sumatra that directly faces Nias island and constructed a port town named Singkuang (New Land).

[5] In 1642, seven ships from Aceh Sultanate were stranded on the eastern coast of the island, resulting in a significant presence of Acehnese communities, which are known locally as Polem people.

[7] In 1668, the Dutch East India Company made agreements with village chiefs around the location of modern-day Gunungsitoli city and the Hinako islands.

[5][8] The Dutch were only able to start a significant military campaign against Nias tribes in 1900 and subjugated the entire island by 1914.

[9] Gunungsitoli was one of two locations on Nias where Dutch authorities held German prisoners during World War II.

[10] Upon hearing news about Japanese attacks on Sumatra, the German prisoners planned a coup against the Dutch colonial authority in the city.

By 24 April 1942, all German prisoners had left the island and the administration was handed over to the Japanese until the end of World War II.

[11] During the Indonesian National Revolution, Gunungsitoli and Nias came under blockade from the Dutch Navy to cut off the island from the western coast of Sumatra.

The relationship between the newly arrived troops and the city's residents was tense, especially because of constant patrols of Republican youths armed with bambu runcing.

Small armed clashes occurred around the city when Dutch military tried to take back control of governmental buildings that were taken over by Indonesian nationalists following the end of the war.

The committee also established a Fonds Kemerdekaan (Independence Fund) to give economic support to the Indonesian republic in Tapanuli, mainland Sumatra, and Kongsi Pelajaran (Shipping Union).

[14] The economic support was in form of the sale of copra to Singapore and donating pigs and oil to Tapanuli.

On 19 November 1949, officials from North Sumatra visited Gunungsitoli to establish a local government council (Dewan Pemerintah Daerah) on Nias, which was realized in 1950.

[5] On 29 October 2008, Gunungsitoli was separated from Nias Regency and became an independent city based on Law Number 47.

[7] Following decentralization and becoming an independent city, Gunungsitoli has seen the highest average economic growth in North Sumatra with 6% in 2018 and 6.05% in 2019.

[16] The city's infrastructure has been improved and development of the tourist industry has been a particular focus of both local and central government.

[23] Gunungsitoli is located close to the equator, and has a tropical rainforest climate with an average of 21 days of rain per month.

There were historically populations of Bugis people, especially around the region close to the Hinako Islands, who were killed by raids from Acehnese ships during the precolonial era.

The city is divided into six districts (kecamatan), which are tabulated below with their areas and their populations at the 2010[3] and the 2020[4] Censuses, together with the official estimates as at mid 2023.

[37] Executive power lies in the mayor and vice-mayor while legislation duties are carried on by the City Council.

[41] The biggest contributor to Gunungsitoli's gross regional product is the trade sector with a figure of 25.49%, followed by construction with 21.82%, and fisheries and agriculture with 14.6%.

The city's gross regional product (GRP) in 2021 was 5,776.11 billion rupiahs, which was the second-highest in the island after South Nias Regency.

In 2019, 2,313 ha (5,715.5 acres; 8.9 sq mi) of the city was cultivated for paddy with a crop yield of 12,997 tons.

[51] Tourist potential includes Nias culture, as well as beaches and natural spots such as cave and waterfalls.

Incumbent mayor Lakhomizaro said he was threatened by an unknown person when attending a Christmas celebration in the city's main church because he had issued convenience store permits.

[58] Gunungsitoli's internet connectivity is mostly provided by Telkomsel though both cellular and fiber optic for its service IndiHome.

[59] The park is often used as place for cultural events and other celebrations such as Indonesian Independence Day, Christmas, and Nias Festival.

The city government plans to turn the buildings into a religious tourism destination, in addition to being proposed to be cultural heritage property.