Founded by Norwegian immigrant Jørgen Eliason in the 1880s, Poulsbo was settled in its early years by a large number of Norwegian and other Scandinavian immigrants because of its similarities to their native countries. In 1886, I.B. Moe, one of the early Norwegian settlers, suggested that the community should have a post office. Moe suggested the town be named "Paulsbo", his hometown in Halden, Norway. The community's petition for a post office was granted and Moe became the first postmaster, but authorities in Washington, D.C. misspelled the town's name, likely misreading Moe's handwriting, and the community became known as "Poulsbo" thereafter. Poulsbo was incorporated on December 18, 1907.