The area was called the Cacicazgo de Jagua by the early Spaniards, and was settled by indigenous people.
The city was settled by French immigrants from Bordeaux and Louisiana, led by Don Louis de Clouet, on April 22, 1819. Its original name was Fernardina de Jagua, in honor of Ferdinand VII of Spain. The settlement became a town (Spanish: Villa) in 1829, and a city in 1880. The city was subsequently named Cienfuegos, sharing the name with Cienfuegos, a Captain General in this time, in the island.
Near Cienfuegos was the scene of a battle on May 11, 1898, between American marines who attempted to sever underwater Spanish communication lines and the Spanish defenders.
During the Cuban Revolution the city saw an uprising against Fulgencio Batista and was bombed, on September 5, 1957