Circa 1200 CE, Krabi was tributary to the Kingdom of Ligor, a city on the Kra Peninsula's east coast, better known today as Nakhon Si Thammarat. In modern times, Krabi was administered from Nakhon Si Thammarat, even after 1872 when King Chulalongkorn granted Krabi town status. In 1875 it was made a direct subordinate of Bangkok, becoming what is now a province. In 1900 the governor moved the seat of the province from Ban Talad Kao to its present location at the mouth of the Krabi River.
It is believed the town may have taken its name from the word "krabi", which means "sword". This may stem from a legend that an ancient sword was unearthed prior to the city's founding