The city's best-known annual event since 1982 is a sandcastle-building competition held from mid-July to mid-August, dubbed "Parksville Beachfest".

Prior to Euro-Canadian settlement, the area was inhabited by several Coast Salish indigenous groups: Qualicum, Snaw-naw-as (Nanoose), and Snuneymuxw peoples.

The Spanish were the first Europeans to explore the area in 1791, followed shortly by the fleet of George Vancouver of the British Royal Navy.

The first European landholder in the Parksville area was John Hirst, who pre-empted 120 hectares (300 acres) of land on both sides of the Englishman River in 1873, although he never relocated there from Nanaimo.

A post office soon followed in 1877, with mail distributed from the cabin of the first postmaster, Nelson Parks, for whom the city is named.

[4]: 202 At that time, logging was a major industry and the extension of the Esquimalt and Nanaimo (E & N) Railway in 1901, to McBride Junction spurred Parksville's growth and the beginning of a tourism boom, mainly Vancouver Islanders who travelled to Parksville to enjoy the incredible beaches.

There is also a fair amount of primary sector industry in the surrounding areas of Parksville, primarily fishing and forestry.

There is an industrial park located in the Southeast section of the city, known as the Orange Bridge Business District, which includes many tradesman shops.

Residents and visitors gather along the road to watch the procession and then walk down to Parksville Community Park where there are vendors, including food trucks, live music performances, some carnival attractions, and fireworks.