The city was founded in 1880 at the site of a Skykomish village and initially settled during a small gold rush. Sultan was platted in 1889, just prior to the arrival of the Great Northern Railway, and was a hub for mining and the lumber industry. It was incorporated on June 28, 1905, with a population of 700. The city was home to a Civilian Conservation Corps camp during the Great Depression and undertook several civic improvements in the post-war years.