Qandala sits on a wadi estuary, which forms a natural protective harbor for vessels on the Gulf of Aden.

In antiquity, Qandala was an active trading center for merchants from the interior of the Horn of Africa, who transported goods such as incense, gum and aromatic woods to and from the port.

The latter settlement features an old fortress complex, which overlooks and controls the mouth of the wadi leading inland.

[2] BBC News reported that ISIL militants had withdrawn from the town for unclear reasons.

On 7 December 2016, a Somali official said Puntland security forces had recaptured the port from ISIL-linked fighters, killing 30 militants.