The town was formally established in 1752 by the Spanish Parishes in the province during the Philippines' colonization by Spain, which started in 1521 and ended with the Spanish–American War in 1899.

During World War II, 1942 Japanese occupation of Panay Island saw the harassments and pandemonium in the area.

Pandan Bay has coral and artificial reefs, found in barangays Patria, Tingib, Mag-aba, Botbot and Idiacacan.

The population of Pandan in 1903 until 1948 includes that of its former barangays in northern and southern parts (currently municipalities of Libertad and Sebaste, respectively).

The municipality began experiencing growth in tourism and development in infrastructure and commerce in late 2010.

The game changer is the Talisay-Perfecta-Santa Ana Road (to be constructed) that will connect the hinterland barangays of Pandan to the town centre.

The town is just 35 kilometres (22 mi) away from Boracay Island, which has become one of the world's popular beach resorts and tourist destinations.

The town's major attractions include the Malumpati Cold Spring Resort and other popular beach resorts and the Bugang River, which has been nationally awarded several times as "the cleanest inland body of water" in the Philippines;[20] the Pandan Bay sunset, and white-sand beaches, sandwiched between the Sulu Sea to the west and, in the east, the Central Panay Mountain Range, and rice, coconut and other farms.

Leandro Locsin Fullon General Hospital, with a 25-bed capacity located at Barangay Bagumbayan, one kilometer away from the town center.

It is staffed by a chief of hospital, two resident physicians, eight nurses, one midwife, one dentist, one pharmacist, one medical technologist, and one nutritionist.

It has a 10-bed capacity and is staffed by one physician, five nurses, one midwife, one dentist, two pharmacists and one medical technologist.

The system was built through a joint undertaking of the Japan Asian Friendship Society and the Local Government of Pandan.

Even though some households can already be reached by electric supply, they choose not to get connected due mainly to its high cost.

There is also a low demand in electric connection because some households are not capable of paying installation expenses as well as the monthly bills.

Power outages and fluctuation can be frequently experienced in Pandan which usually occur during weather disturbances.

AKELCO gets its supply of power from NAPOCOR through a 69 kV transmission line traversing the Iloilo-Capiz-Aklan area.