The town's name is from a Subanen word,"Migsalip" which means "to collect" or "accumulate".
Midsalip was formed as a municipality out of 21 barrios of the Municipality of Ramon Magsaysay and 6 barrios of the Municipality of Dumingag on September 9, 1964, by virtue of Executive Order Number 94 signed by President Diosdado Macapagal. This didn’t last long, however, as it was dissolved on February 26, 1966, due to a Supreme Court decision regarding the legality of the funds disbursed by the municipal treasurer. As a result, Midsalip was reverted to barrio status. It wasn’t until May 8, 1967, when the Republic Act No. 4871 was passed when Midsalip became a regular municipality again.