In late 2006, the Alaska Marine Highway System began a study for a new Lynn Canal ferry.

Later in 2010 Governor Sean Parnell made the decision to forgo any federal funding of the ferry, opting instead to give the contract to an Alaskan firm in order to bring jobs to the state and stimulate the local shipbuilding industry.

[1] The legislature backed the governor, appropriating an additional $60 million for the ferry in 2011 to make up for lost federal funding.

[4] Governor Parnell ordered a halt to the project and redirected the effort towards two smaller, cheaper day-use vessels.

Negotiations between the state and Vigor resulted in a contract signing on October 16, 2014, for the construction of two ferries for a guaranteed maximum price of $101,513,651.

Seventh-grader Malea Voran of Port Alsworth nominated Tazlina because it is an Athabaskan word for "swift river", which she thought appropriate for the ferry.

[16] Tazlina and the rest of the Alaska Marine Highway System were idled when ferry workers struck on July 24, 2019.

[17][18] It was idled again at the end of the summer season but returned to service in Lynn Canal on November 22, 2019, as a replacement for two ferries with maintenance issues.

The Alaska Marine Highway System proposed to retrofit crew quarters into Tazlina and Hubbard.

[24] In the face of state budget cuts and reduced ridership due to the Covid-19 pandemic, Tazlina did not sail during the summer 2020 season.