Prior to European settlement, the area was occupied by the Ngarigo people. The first Europeans in the vicinity were members of the exploratory party of Dr Charles Throsby in 1820, who, along with Hamilton Hume, also originally explored the Braidwood area. In 1824, explorer Allan Cunningham passed through Bungendore. A year later, the first European settlers arrived. The mail service to Bungendore was introduced in 1837, enhancing the importance of the village and contributing to the proclamation of Bungendore as a "town" in the same year. Also in 1837, the surveyor James Larmer laid out the Georgian-influenced grid town plan of Bungendore.