Prior to the Spanish colonization, The Kingdom of Taytay was ruled by a monarch. The crew of Ferdinand Magellan held the Taytay king and queen for ransom after escaping the Battle of Mactan where Magellan was slain. They intended to secure more supplies as they plan to cross into the Moluccas where the Portuguese were so help can be sought. The native king and his subjects complied with the demands and even added more food supplies than what they asked for. This was duly recorded by Antonio Pigafetta, Magellan's chronicler, who was on board in one of the ships when these events took place.
During the Spanish colonization of the Philippines, Taytay was formally founded in 1623. Taytay became the capital of the Spanish Province of Calamianes, the entire territory of Palawan, in 1818; and the Province of Castilla, a land area occupying the northern part of Palawan, in 1858. During the American era, Taytay ceased being Palawan's capital, and its administrative boundary was reduced by approximately 500,000 hectares upon the creation of the Municipality of El Nido in 1916.
The historic Taytay Fort, the Fuerza de Santa Isabel, built in 1667 under the Augustinian Recollect Fathers and named in honor of Spain's Queen Isabela II in the 19th century, was used as a military station during that period. This famous relic was completed on 1738. It was mainly used to defend against Muslim warrior-raiders in their colorful war boats while the Spanish soldiers fire at them with their huge cannons. The fort's small chapel and cannons are still intact. The fort is now under the supervision of the National Museum. The Moro action must be understood not as an act of piracy but as a showdown of power and challenge to Spanish hugemony over the islands. It can be viewed as the Tausug's efforts to recover what was once theirs. Similar raids were also carried out against Christian converts in Spanish Cuyo, Dumaran, Linapacan and Culion.
In 1957 the Island of Dibangan was constituted into a barrio.