The river which flows into the sea at Margate is called "Nkhongweni" (place of entreaty) as the original inhabitants of the area were reputed to be so mean resulting in travellers begging for hospitality.

In 1908, Henry Richardson, an English surveyor laid out the town and named it Margate after another seaside resort on the northern coast of the county of Kent, in the United Kingdom.

[2]: 329 Margate hit the world headlines in 1922 (although this date is often disputed and stated as 1924) when an enormous, white, furry creature (dubbed "Trunko" due to it having an elephantine trunk) was washed up on the beach.

[6] Margate is busiest during school and public holidays when inland residents travel to the coast.

Margate is one of the most visited tourist destinations in South Africa and had the third highest inflow of new visitors in December 2019 in South Africa after Plettenberg Bay and Mossel Bay, both in the Western Cape Province meaning that Margate had the highest inflow of new visitors in December 2019 in the KwaZulu-Natal Province.

The major arterial route is the R620 (Marine Drive; National Road) which connects the town with Uvongo to the north and Ramsgate to the south.