Before Chiang Mai the area was known as Haripunchai and survived by trading with people on the coast in central Thailand. Phaya Mangrai of Yonok State heard about Haripunchai's wealth and conquered Chiang Mai in 1292 and formally founded Chiang Mai on 12 April 1296 as the capital of the kingdom of Lanna. The first temple built was Wat Chiangman. The city moat was constructed as a means of fortification.

Lanna unified several small kingdoms in the North, at about the same time that Sukhothai was established further south. Lanna translates as the "land of a million rice fields".

Buddhism arrived from Sukhothai during Phaya Kuena in the period 1355 - 1385. Prahat Doi Suthep was built in 1373 to house the remains of the Lord Buddha.

During the Tilokaraj period from 1441 - 1487 Lanna prospered and had many battles against Ayutthaya. Chiangmai was attacked and fell under the control of King Bureng Nona of Myanmar in 1558 and then governed by a succession of Princes and remained a Burmese colony for 200 years. In 1774 Lanna asked King Taksin to fight against the Burmese and control switched to the Thai and led by Phraya Jaban and after his death King Rama 1 appointed Phraya Wachiraprkarn. Chiang Mai although colonized was free to rule itself and the main obligation was to send gold, flowers, teak and cloth to Bangkok three times a year.

During the British and French colonial periods Lanna was a buffer state and left alone. The main wealth coming from logging. King Rama V was concerned that Lanna would be colonized and so Chiang Mai was made part of the Kingdom of Thailand. In 1932 Chiang Mai became a Province of Thailand.

The railway reached Chiang Mai in 1921 and replaced the waterways as the main means of transportation. During World War 2 Japanese troops established themselves in Chiang Mai. After the war electricity and water services were developed.

The city then developed as the centre for the Northern Region and a major tourist destination. Hotels and condos were constructed along with resorts in the hills. This development has led to many environmental issues and increased environment activity to improve life in Chiang Mai.