The first account of the settlement is in Æthelred the Unready's record of the Danegeld tax of 991, when it was called Eremue, meaning "muddy estuary".

[5] It is effectively a gun platform, built by Henry VIII to fortify the Solent and protect against any attempted invasion of England.

He obtained it in a raid on a French ship, when he seized an unfinished statue of Louis XIV of France and forced the sculptor to finish it with his own head rather than the king's.

[8] To reach Yarmouth, route 7 uses Pixley Hill, which has caused some controversy amongst local residents who do not believe the road is large enough for buses.

[10] In the spring and summer, Southern Vectis also operate an open top bus called "The Needles Breezer" that runs through Freshwater Bay to Alum Bay and onto the Needles Battery down a bus and pedestrian-only road along the cliff edge; returning to Yarmouth via Totland and Colwell.

Yarmouth hosted the popular biannual Old Gaffers festival which included several days of entertainment and shows,[13] but in September 2018 it was announced that the event would no longer be held.

[14] Yarmouth marina is the landing point for the Royal Navy's Solent Amphibious Challenge, held in June each year.