Based on civil and church records from 1820, Magdiwang was founded as Fundacion de Naylog, a settlement established in the northern coast of Sibuyan Island by religious missionaries led by Don Valentin Ayala. It was placed under the jurisdiction of "Pueblo de Sibuyan", whose seat was located in Cajidiocan town. In 1855, the settlement was one of 17 new pueblos (towns) added to the four already existing in the province and was renamed Magallanes, in honor of Spanish explorer Ferdinand Magellan.