Musgrave Harbour is a fishing community that was originally named Muddy Hole.

In the 19th century the migratory fishery took place between Musgrave Harbour and Cape Freels and eventually permanent settlement began.

The first family to settle in Musgrave Harbour was John Whiteway, of Western Bay, in 1834.

The people of Musgrave Harbour also became active in the Fisherman's Protective Union movement and the F.P.U established a local council there in 1909.

[1] In 1941 Dr. Sir Frederick Banting, co-discoverer of insulin, died the following day after a plane crash near Musgrave Harbour.

Important early architect William Tuff Whiteway came from Musgrave Harbour.

The school was closed in 1863 but it reopened again in 1865 with John Wheeler as the teacher, and he served for 24 years.