The history of Wafangdian is rooted in antiquity: archaeological finds indicate that humans inhabited these lands as early as the Neolithic era, more than 4,000 years ago. However, the first official records of a settlement appeared during the Warring States period (475–221 BC), when the territory of modern China was divided between warring states. At that time, the region was part of the Liaodong District of the Yan Kingdom.
The city received its poetic name, which translates as "tiled-roof shop," during the Qing Dynasty. According to historical legends, during the reign of Emperor Kangxi (1662–1722), an enterprising merchant built an inn here with a roof made of tiles. For that time, it was a true luxury, standing out against the simple mud-brick huts, and the name of the estate eventually became associated with the entire settlement.
The city's development was facilitated by its favorable geographical position on the Liaodong Peninsula. During the Qing era, Wafangdian served as an important postal station and a crossroads for trade routes, providing links between remote regions and facilitating the movement of goods and troops. The economic foundation of the region traditionally relied on agriculture and servicing transit caravans, while the famous Hengshan Academy was long considered the cultural center of these lands.