[6] The legend continues that when the Spaniards came they saw floating at the bay a cluster (pong pong) of mangrove propagules locally known as "Tungki", they decided to change the name of Hinablayan to Paungpung, after the cluster of mangrove propagules to erase the bloody memory of the Moro raiders.

It is said that cluster later got stuck to the shoal until they grew up as trees, forming an islet which is Tabuk Island today.

[6] The place assumed the role of cabeceria of all the municipalities in the north-western side of Leyte during the Spanish regime.

[6] Sometime in late 17th century, there was a nine-day battle between the Palomponganons and Moro raiders during which the residents rushed to the stone church (newly completed at that time) and took refuge for more than a week.

Villaba and Matag-ob were both part of the territorial jurisdiction of this town as well before they obtained their municipio (pueblo) status.

In 1957 the barrios of Santo Rosario, Santa Rosa, Balagtas, San Vicente and Mabini were separated from the municipality of Palompon and constituted into Matag-ob.