[2] The county was named for the Klamath,[3] the tribe of Native Americans living in the area at the time the first European explorers entered the region.

When European-Americans began to travel through the area in 1846 along the Applegate Trail, they competed with the Klamath for game and water, which precipitated clashes between the peoples.

This was exacerbated by European-American settlers, who cleared the land to farm and encroached on hunting territory.

Because of the extensive tracts of forest, the Klamath were very well off as a people until the termination of the reservation by the U.S. government in 1954.

Instead of cash, he insisted on receiving the title to ancestral land along the Sprague River where he lived.

On December 5, 1980, the Chiloquin Act was signed into law, giving him title to the properties he wanted.

Federally, Cliff Bentz, a Republican, is Klamath County's representative in the United States House from the 2nd district.

Historically, Klamath County's economy was based on timber and agriculture, and although these natural resource industries now contribute only a small fraction to the region's current economic activity and employment, their legacy lives on in local politics, community identity, and landscape.

In addition, the government-subsidized federal reclamation project, the Klamath Irrigation Project, dammed upper tributaries and drained much of the 128 square miles (331.5 km2) Lower Klamath and Tule lakes to convert 188,000 acres (760 km2) of former lakebed and wetlands into farmland, to be supported by irrigation.

Today the Sky Lakes Medical Center is the largest employer in the area, followed by Klamath County School District and Jeld-Wen, a manufacturer of doors and windows.

The area is currently experiencing a boom in housing construction, as its proximity to California brings waves of retirees from population centers to the south.

Outdoor recreation, such as hiking, hunting, and world-class trout fishing, as well as Oregon's only National Park at Crater Lake, contribute to the economy of the area.

Natural geothermal hot wells provide heat for many homes, businesses, and the Oregon Institute of Technology campus.