Christopher Columbus reported sighting the Cayman Islands in 1503. While not home to any permanent settlements, the islands were visited by indigenous tribes and were populated by crocodiles and iguanas, with seas teeming with turtles. Turtles remain a symbol of the islands today, although their population was drastically reduced by passing ships hunting them for their meat.

Throughout the 17th century, the islands were frequented by pirates and privateers. British settlement began in the mid-17th century, primarily by individuals of British, African, and Jamaican descent. Until the mid-20th century, islanders mainly relied on fishing, subsistence farming, and employment in the merchant navy for foreign ships. However, a shift began with the opening of the first commercial bank, the establishment of hotels, the creation of the world’s first scuba diving center, and the government's encouragement of the growth of the international finance industry — which thrives today thanks to zero taxation, a British legal system, and political stability.

Although many Caymanians have emigrated to work abroad, a strong sense of national identity has been maintained, with many individuals eventually returning home. Today, the Cayman Islands enjoy one of the highest standards of living in the Caribbean and remain a British Overseas Territory.