Lying opposite to the town of Port Hawkesbury, the community is located along the western shore of the Canso Strait.

It was established as McNair's Cove in the early 19th century, and the name Port Mulgrave was adopted in 1859, later shortening to its current form.

The early industry of the community relied on ferry service between the Nova Scotia mainland and Cape Breton Island.

[5] Adding to the economy were a new lobster factory and a new rail ferry, which further increased capacity across the Strait of Canso to Port Hawkesbury.

[4][5] In August 1955, the community suffered a major economic blow with the opening of the Canso Causeway which immediately removed both road and rail traffic through the town.