The town was founded in the early 18th century. On 8 August 1705, the Spanish colonial captain Don Juan García de la Candelaria acquired the area then called "Los Llanos" from the Spanish crown and founded his estate with four ranches, later the first settlers named it Santa Rosa, and later Santa Rosa de Los Llanos. A tobacco industry developed in the early 18th Century and in 1765 the town was picked as the site for La Real Factoria del Tabacos, the Royal Tobacco Company, a Spanish crown company. Later, the Gracias a Dios Department was split in two departments, becoming Copán department and Lempira department.