During the Lý-Trần dynasties, the land where Mộc Châu is now the Southern part of Đà Giang province (Đà-giang đạo) of the Annamese Empire, although it was still completely independent in reality.

In the 1952 Nasan campaign ("cassava field" in Tai language), Mộc Châu was used by Vietminh forces as a military supply center to quickly cut off the "stomach" of the French armies (CEFEO) in the Northwest region.

On November 14, 2025, the National Assembly Standing Committee of Vietnam issued the Resolution No.1280/NQ-UBTVQH15 on the arrangement of district and commune administrative units in Sơn La province in the period of 2023-2025.

On November 25, Sơn La Provincial People's Committee held a press conference and reached agreement that it would hold the Ceremony to announce the establishment of Mộc-châu Town on January 18, 2025.

According to an old legend, Mộc Châu is the venue that used to take place a horse race to divide the border between the Black Tai people and the Xá ethnic groups.

The Tai men used a newly born horse to participate in the competition, and as a result, they won to chase the Xá people to step back to Hòa Bình province.