The first inhabitants of the island of Bali are expected to have migrated from Asia between 3000 and 2500 BCE. Remains of relics were found in the village of Cekik, located in the western part of the island. Prehistoric times and then ended with the arrival of Hinduism and Sanskrit letters in 100 BC.

 

Bali culture became a strong influence on Indian culture, which processed faster after the 1st century AD. The name Balidwipa (Bali Island) began to be found in various inscriptions, including the Blanjong pillar issued by Sri Kesari Warmadewa in 913 AD and mentioning the word Walidwipa. It is estimated that around this time, the Subak irrigation system for rice cultivation was developed. Some religious and cultural traditions also began to develop at that time.

The Majapahit Empire (1293–1500 AD), a Hindu empire centered on the island of Java, founded the kingdom of subordinates in Bali around the year 1343 AD. Almost the entire archipelago was Hindu, but with the coming of Islam, there were Islamic kingdoms in the archipelago, causing the collapse of Majapahit. Many nobles, clergy, artists, and other members of the Hindu community when it withdrew from Java to Bali.

The European who first discovered Bali was Cornelis de Houtman from the Netherlands in 1597, though a Portuguese ship had previously been stranded near Bukit, Jimbaran, in 1585. The Dutch, through VOC, began to implement their occupation of the Bali land but continued to get resistance, so until the end of the power, their position in Bali is not as solid as their position in Java or Maluku. Starting from the northern region of Bali, since the 1840s, the Netherlands has become a permanent presence that was originally done by pit-sheep. Various Balinese rulers do not mutually trust each other. The Dutch major attack by sea and land against the Sanur area, which was followed by the Denpasar area. Bali people, who lost in numbers and weaponry, do not want to be shamed for surrendering, thus causing the war to the dot of blood or war till die (Puputan Badung 1906), which involves all the people, both men and women, including the king. An estimated 7,000 people were killed in the incident, although the Netherlands has ordered them to surrender. Furthermore, the Dutch governors, who ruled only a few, exerted influence on the island, so local control of religion and culture remained generally unchanged.

Japan occupied Bali during World War II, and then a military officer named I Gusti Ngurah Rai Bali formed forces called "freedom fighters". Following the defeat of Japan in the Pacific in August 1945, the Dutch promptly returned to Indonesia (including Bali) to re-establish its colonial rule as a state before the war. This was opposed by the forces of resistance in Bali, who were using Japanese weapons.

On November 20, 1946, fighting broke out in Puputan Margarana in the village of Marga, Tabanan, Bali Middle. Colonel I Gusti Ngurah Rai, who was 29 years old, led his army from the east of Bali to carry out attacks on the Dutch armed forces. All members of the Balinese battalion were killed, making it the last Balinese military resistance.

In 1946, the Dutch made Bali one of 13 areas that became part of the State of East Indonesia, i.e., one of the rival states to the Republic of Indonesia, which was proclaimed and headed by Soekarno and Hatta. Bali was then also incorporated into the United States of Indonesia when the Dutch recognized Indonesian independence on December 29, 1949. In 1950, Bali officially left the union with the Dutch and became a province of the Republic of Indonesia.

The Mount Agung eruption that occurred in 1963 had shaken the people's economy and led many people in Bali to migrate to other areas of Indonesia.

In 1965, along with the failure of the G30S coup against the national government in Jakarta, Bali, and many other areas, there was a crackdown against members and sympathizers of the Communist Party of Indonesia. In Bali, it is estimated that more than 100,000 people were killed or disappeared. Nevertheless, the events of the early days of the New Order have not yet been disclosed by law.

Terrorist attacks occurred on October 12, 2002, in the form of the 2002 Bali bombing attack in the Kuta Beach tourist area, causing as many as 202 people to be killed and 209 others to be injured. The 2005 Bali bombing attacks also occurred three years later in Kuta and Jimbaran Beach. These incidents received extensive international coverage because most of the victims were foreign tourists, and Bali's tourism industry is facing severe challenges.