Originating in Monterey, on the Central Coast of California, the cheese has been called "a vestige of Spanish rule in the early nineteenth century, deriving from a Franciscan monastic style of farmer's cheese.

[4] California land speculator and businessman David Jacks sold the cheese commercially.

[6] Other ranchers in the area likewise produced the cheese, among them Andrew Molera, who built a successful dairy operation in Big Sur and whose Monterey Jack was especially well regarded.

As World War I intensified and shipments of hard cheese from Europe were interrupted, he rediscovered the wheels, which had aged into a product his customers found to be a good substitute for classic hard cheeses like Parmesan.

[11] Because of its low content of tyramine, an organic compound thought to be associated with headaches, Monterey Jack is frequently recommended as one of the few kinds of cheese that is safe to eat for migraine sufferers.