In the early part of 1921, immigrants from Central Luzon pioneered by the families of Nano, Fabrigas and Espanol came into this large strip of virgin lands along the Pacific Coast via the jungle of the Sierra Madre Mountains. Ilongotsm were the first inhabitants of the place.

The municipality of Dipaculao was accidentally created when while the Ilongots were having festivities of thanksgiving to commemorate the abundance of hunting and harvesting, ”Dipac”, the Ilongot Chieftain was drunk with ”Basi” and ”Tuba”, a kind of native , fell on the ground. The Ilocanos who were present saw him fell shouted: ”Dipacnaulaw”, (Dipac got Dizzy), hence born the name Dipaculao.

On 27 November 1950, Dipaculao was formerly a barrio of the municipality of Baler. The late President Elpidio Quirino made it into an independent municipality thru Executive order No.375. The late Anacleto Mijares was the first Municipal Mayor administered the transition of the municipality.