Hinundayan was once a part of Hinunangan, and it also existed as a town in 1853.
During the end of the 19th century, the townsite was transferred a kilometer away towards the southeast. After the outbreak of the revolution against Spain in 1897, the town was annexed to Hinunangan. It was reinstated as a town on January 1, 1910.
Hinundayan, the story goes, was the subject of frequent raids in the earlier 1700 and 1880's, and an epidemic that decimated the population of the town. Rich relics were found in the ruins of the church and towser in 1752-1754 in Lungsodaan. Towards the end of the 18th century the last Moro raid in Lungsodaan burned the church but the image of St. Joseph was not burned.
Tourist destinations are Cabulisan Spring, Bugho Mabaho and Abutangan Caves, Ambao Fish Species Sanctuary, An-an Ka Jose and Ka Pering Diving Sites.