The province of Phang Nga, originally known as "Phunga" or "Punga," likely derived its name from the nearby Phu Nga mountain. The region initially fell under the jurisdiction of Nakhon Si Thammarat and gained prominence during the Ayutthaya period due to its rich tin deposits, which attracted foreign merchants. Phang Nga grew as a mining hub with four major settlements: Phang Nga, Takua Pa, Takua Thung, and Kuraburi—now districts within the province.

After the Burmese attacked Thalang and nearby towns in 1809, Phang Nga became a regional center under Nakhon Si Thammarat's oversight. The town officially became "Phang Nga" during King Rama II's reign when foreign traders began spelling "Phunga" phonetically as "Phang Nga." In the early Rattanakosin period, Phang Nga became an important mining site, but faced challenges such as food scarcity, Burmese raids, and resistance from residents unwilling to relocate to the rugged area. Despite these obstacles, efforts led by Phra Wichian Phakdi and later leaders successfully established Phang Nga as a tin production and trade center.

By the late 19th century, Phang Nga's strategic importance was recognized by King Rama V, who visited in 1890. By this time, Phang Nga had grown into a stable community but was less prosperous than neighboring Phuket and Takua Pa. In 1916, it was formally designated a province, and administrative divisions were restructured, resulting in Phang Nga City and several surrounding districts. In 1933, during an economic downturn, Takua Pa, previously its own province, was incorporated into Phang Nga. The provincial center moved to Ta Chang in 1930 and eventually to the current location at Pung Chang Cave in 1972. Phang Nga continues to be a significant cultural and historical region, preserving its rich heritage in mining and trade.