In ancient times, Muğla was apparently a rather insignificant settlement halfway on the passage between the Carian cities of Idrias (later Stratonicea) to the north and Idyma (modern Akyaka) to the southwest on the coast. The indigenous name Mobolla, which survives with little change, appears for the first time in the beginning of the 2nd century BC at the time of its region's passage from what was apparently an eastern Carian federation linked with Taba (modern Tavas) and other cities to Rhodian domination. Mobolla was part of the Rhodian Peraea on a firm basis as of 167 BC until at least the 2nd century AD. The Rhodian territory started here and while region was subject toRhodes, it was not incorporated in the Rhodian state.
There are almost no ruins to reveal the history of the settlement of Mobolla. On the high hill to the north of the city, a few ancient remains indicate that it was the site of an acropolis. A handful of inscriptions were unearthed within the city itself and they date back to the 2nd century BC..
Turkish-era Muğla also remained a minor site in the beginning despite having been captured relatively early for western Anatolia in the course of the 13th century. The local ruling dynasty ofMenteşe had their capital in Milas. Muğla acquired regional importance after it replaced Milas as the seat of the subprovince (sanjak) under the Ottoman Empire in 1420. The sanjak kept the name Menteşe until the Republican Era, when it was renamed Muğla after its seat of government
