Mavčiče was attested in written sources in 1439 as Maltschitz and Maltzitz (and as Maltschitsch in 1455 and Malczicz in 1464). The name may be derived from *Malъčiťi, a plural patronymic from the personal name *Malъkъ, thus referring to an early inhabitant. An alternate theory is based on the transcription Vuizilinesteti from 973; if this is derived from Old High Germanluizili 'small' + stat 'town', and if it refers to Mavčiče, then the name could be derived from the plural demonym*Mal(ovьsь)čiťane (literally, 'residents of a small village'). However, this hypothesis is phonologically and morphologically problematic. In the past the German name was Mautschitsch.
The Mavčiče Hydroelectric Plant began operating in 1987 and has an average yearly capacity of 61 GWh. In 2006 and 2007 solar panels with a capacity of 72 kW·h were mounted on its southern face, making it the largest solar power production unit in Slovenia to date.