The greater Zeehan area was inhabited by the indigenous Peerapper and Tommeginne clans[3] of the North West group for over 10,000 years prior to the British colonisation of Tasmania.

They were greatly coastal peoples, residing in small numbers on a diet consisting of muttonbirds, seals, swan eggs and cider gum, and constructed bark huts when strong westerly winds brought about rain and icy temperatures.

In their circumnavigation of Tasmania between 1798 and 1799, George Bass and Matthew Flinders named the Heemskirk Ranges mountains Mount Heemskirk and Mount Zeehan after Tasman's ships, the warship Heemskerck (itself named after Jacob van Heemskerck, whose surname means "from Heemskerk") and the 200-tonne (200-long-ton; 220-short-ton) fluyt Zeehaen (Old Dutch for "Sea Rooster") in honour of Tasman's voyage of exploration.

Deposits of silver and lead were discovered in the area by Frank Long in 1882 and Mount Zeehan Post Office opened on 1 August 1888.

[14][15] The township has had its share of criminal characters-with various acts of manslaughter, assault and aggravated burglary in its history both past and present.

[16][17][18] During the COVID-19 pandemic, ten parcels of land, some as cheap as $8000, were sold by the West Coast Council as a means to attract new residents.

A History of the West Coast model railway and diorama display is now open opposite the museum and is being built as a tourist attraction.

These lakes are in the mountainous areas up to 130 kilometres (81 mi) downwind from Zeehan and Queenstown and have been adulterated by atmospheric pollution mainly caused by open cut mining proceeding uninhibited till finally controlled by the Environment Protection Act of 1973.

Also at early stages of the town's history, a series of timber trams spread out from Zeehan towards the Pieman River as well as a number of other locations.

The West Coast Heritage Centre features examples of Tasmania's mineral emblem, the valuable crystal crocoite, as well as other geological specimens and historic mining artefacts.

Reverend Dorothy McRae-McMahon, Australia's first openly gay clergy member and human rights activist was born in Zeehan.

Parts of a 1925 Australian silent film, Jewelled Nights were shot[29] on Savage River, north of the town in the Tarkine rainforest.

[32] 2023 crime drama, dark comedy series, Bay of Fires, starring Marta Dusseldorp was filmed at locations in Zeehan, Queenstown and Strahan in 2022.