The community was founded in the 1850s when, through the efforts of Benito Ju�rez, the government built a wharf. At that time, this was a very isolated part of the country and the port was designed to help the area develop its coffee and lumber industries, by giving it a means to ship these products to other parts of the country. The port reached its height by 1870 and was the busiest port in the state of Oaxaca. However, after this time several developments lead to the port�s decline. A rail connection and road connected Salinas Cruzto the capital and it emerged as a port. Also federal sponsorship of the wharf faded after Ju�rez�s death.
In the 1960s, tourists began to take interest in this part of Oaxaca�s coastline. Highway 175, which has been only a dirt trail, was paved. Highway 200, which links most of Mexico�s Pacific coast towns, was built in the 1970s and 1980s, connecting Puerto Angel with more popular beach destinations to the north. Gradually, small hotels were built to accommodate tourists.
Hurricane Pauline made landfall at Puerto Angel on 8 October 1997. Damage to this town and many other coastal areas of Oaxaca was extensive.
The pier that was initially built in the 19th century was refurbished in 1999; however, it is too high to accommodate the fishing boats that use the harbor.
In 2009, an unusually large number of pelicans migrated to the area due to colder than normal temperatures farther north. Many of these pelicans were accidentally drowned by fishermen�s� nets or run over by boats as they tried to get to the trapped fish. The fishermen asked for help from the government to figure out what to do to avoid these pelican deaths as most claim to have affinity for the birds and many even have a pelican as a family pet