The history of Melaka is often told from the foundation of the settlement by an exiled Hindu, SriVijayan prince, Parameswara. From a small fishing settlement, Melaka or Malacca (old name) grew to become one of the most prominent trading post in South East Asia from the 15th century.

     According to a local legend, while out hunting one day, the Sumatrian prince, Parameswara was resting under a tree when one of his dogs encountered a mouse deer. In self-defense, the mouse deer pushed the dog into the river. Impressed by the courage of the deer and taking this as a sign of good omen, Parameswara selected the spot he was sitting to build his kingdom or empire. He named it Melaka (Malacca) after the tree which he had taken shelter.  He ruled as a Hindu ruler until 1414 when he converted to Islam and became known as Sultan Iskandar Shah.

     The strategic position of Melaka attracted many traders, who used the port to await the changing of the Monsoon winds. The hinterlands also provided local and jungle produce for the traders. Settlement of Chinese began in the 15th century, many settling in Bukit China. The Melaka Sultanate became one of the most renowned Malay kingdom and soon overshadowed the importance of Kedah - the kingdom at Bujang

(See Kedah History)

     The prosperity of Melaka also attracted the Siamese but development of relations between China and Melaka helped wad off Siamese dominance. The importance of Melaka as a maritime kingdom was noted by China's notable admiral and explorer, Admiral Zheng He (Cheng Ho), in the 15th century. Chinese influence grew when Sultan Mansur Shah married a Chinese princess, Hang Li Po. Melaka (Malacca) also became an outpost for China after the visit by Zheng He. The Chinese men soon intermarried with the local Malays forming a unique community called the Peranakans (Babas and Nonyas).

     The growth of Melaka brought the Europeans clamouring for control of her wealth and trade. Malacca was conquered on 1511 by Afonso de Albuquerque, a Portuguese viceroy of India, and it became a strategic base for Portuguese in the East Indies. Sultan Mahmud Shah, the last Sultan of Melaka fled and later died in Sumatra. The Portuguese controlled Melaka for 130 years. In 1641, the Dutch captured Melaka from the Portuguese and ruled Melaka until 1795. When British colonized much of Malaya, the Dutch ceded Melaka to the British in the Anglo-Dutch Treaty of 1824, in exchange for Bencoolen, Sumatra.

     Melaka was first governed by the British East India Company. Then In 1826, Melaka together with Singapore and Penang, formed part of the Straits Settlements, under British colonial office in India. Melaka remained under British control until Malaya gained her independence in 1957.