The city itself was previously named Dayong (??), and has a recorded history dating back to 221 BC. People lived here along both banks of the Lishui River (the mother river in Zhangjiajie), now within the boundaries of Zhangjiajie City, very early during the Stone Age. Human settlement in this region dates back 100,000 years, rivaling such famous sites as Xi’an, Beijing and others. In 1986, the Academy of Chinese Social Science discovered Stone Age relics in Cili County, unearthing 108 articles of stoneware; mostly tapered-form, hacked-tamped and plate-shaped works. According to archaeological experts’ textual research, all of these wares were produced about 100,000 years ago. Shortly thereafter, in 1988, the Archaeological Institute of Hunan Province found other relics in Sangzhi County, including three pieces of stoneware which were estimated to have been fashioned over 100,000 years ago.

Ten thousand years ago, those who lived within the boundaries of what is now Zhangjiajie City employed fire to bake pottery. Archaeologists have found more than 20 relics of this kind in Cili County, while in Sangzhi County, a black clay pot adorned with a unique design was unearthed dating back ten thousand years. During that period, this pottery-firing technique was the most advanced in China. These technological advancements in the fashioning of stone tools and pottery would seem to indicate a highly developed culture in this region. However, the society which developed only endured briefly before waning and being superseded by other regional powers. This seems understandable in view of Zhangjiajie's remote geographical position, its undeveloped land and river transportation, and its mountainous terrain making cultivation difficult. For these reasons, Zhangjiajie has been labeled "the Land of the Savage Southern Minority" since the earliest recorded history. Additional name descriptors have been the "Wuling Rude People" and "Tujia Rude People", indicative of discriminatory views held against the regional culture.

In 1982, central government built the first national forest park here and named it Zhangjiajie National Forest Park. In 1988, Dayong city, in which Zhangjiajie located, together with Sangzhi (the site of Tianzi Mountain) and Cili (the site of Suoxi Channel) combined into one city that subordinated to provincial government directly. As the development of tourism industry, and Zhangjiajie National Forest Park is increasingly becoming known to world, Dayong city was renamed as Zhangjiajie city in 1994, which is which is famous for the Wulingyuan Scenic Area.

Zhangjiajie was entitled as world heritage by UNESCO in 1992 and also managed to become international geological park in 2003.

Nowadays, there are four districts under its governance: Yongding District, Wuling District, Cili County and Sangzhi County. Now, Zhangjiajie is a major destination for tourism, where green mountains, beautiful lakes, scenic valleys, mysterious caves, cultural heritage and special folk customs are available for all to experience.