Mihăileni is situated in the foothills of the Ciuc Mountains, at an altitude of 739 m (2,425 ft), on the banks of the river Racul.

The settlement was formed at the meeting point of this river and the Csorgó Stream springing from the Kőd Mountain.

Its name was first recorded in 1333 when a ’sacerdos de Sancto Michaele’ was mentioned in a papal tithe register.

After the Treaty of Trianon of 1920, it became part of the Kingdom of Romania and fell within plasa Frumoasa of Ciuc County during the interwar period.

Towards the end of World War II, Romanian and Soviet armies entered the area in September 1944.

The territory of Northern Transylvania remained under Soviet military administration until 9 March 1945, after which it became again part of Romania.