Ylläs, one of the most popular ski resorts in Finland, is located in Kolari.

The area also features the country's largest bog with a thousand-year-old forest.

[citation needed] The area of Kolari was a part of the Pajala parish, which is in modern Sweden.

Kolari started growing in the 17th century due to the nearby Kengis (Köngäs) ironworks established in 1644.

After Russia gained Finland in 1809, it was transferred to the Turtola parish, modern Pello.