John Oxley, explorer and NSW surveyor general, was probably the first European to cross through what is now the Ungarie district.

The old hotel was owned by Mrs Kerwin, and a portion of it, which still stands at the rear of the butcher's shop was the dining room and was built around 1883 by Mr Tout.

By 1892 the settlement comprised a post office, a hotel, two general stores, a blacksmith shop, a butchery and a boarding house.

Following this, Surveyor A. Maitland reported that a village should be surveyed on the south side of the Euglo or Humbug creek in a position which would now be midway between the present township and the original business place adjacent to the east.

Surveyor Roberts reported in December 1892 that a more suitable site existed on the north side of Euglo or Humbug creek opposite the present day township.

By 1900 the village of Ungarie began to grow and a baker shop was added to the list of services provided in the town.

After considerable agitation from residents[5] a new branch railway line was approved for construction from the existing terminus of West Wyalong to Ungarie and on to Lake Cargelligo.

[8] The current village of Ungarie includes a central school, an Australian rules football/cricket ground, a post office, a pub, a butchery, a fuel station, a mechanic, an AGnVET, a swimming pool, a retirement home and a Catholic church.

The most popular sport in Ungarie is Australian rules football, despite New South Wales being a largely rugby league supporting state.