Sligachan is situated at the junction of the roads from Portree, Dunvegan and Broadford. The hotel was built in around 1830 at this road junction. Many early climbers chose this as a spot to start ascents of the Cuillin. Today there is also a campsite and bunkhouse adjacent to the hotel. There is also a small microbrewery, which is operated in the same building as the hotel.
Tradition has it that the Lord of the Isles attacked Skye in 1395, but William MacLeod met the MacDonalds at Sligachan and drove them back to Loch Eynort (Ainort). There they found that their galleys had been moved offshore by the MacAskills, and every invader was killed. The spoils were divided at Creag an Fheannaidh ('Rock of the Flaying') or Creggan ni feavigh ('Rock of the Spoil'), sometimes identified with the Bloody Stone in Harta Corrie below the heights of Sgurr nan Gillean.