Named after the bay, which in turn was named in June 1792 by George Vancouver after Sir William Bellingham, the area was first settled by Europeans in 1854. Originally Bellingham was named Whatcom and featured "Fort Bellingham" on Peabody Hill.
During the gold rush — only four years after settlers arrived — the population exploded as the town became the port for the Whatcom Trail, which gave access to the gold located in Fraser Canyon. Gold mining gave way to coal mining, peaking during the 1920s.
Rail arrived via three lines during the early 1890s. After the great 
San Francisco earthquake of 1906, the hills around Bellingham provided lumber for the reconstruction of the city.
The Bellingham Riots took place on September 4, 1907, when racists attempted to drive Indian-Americans out of town.
