Bali has been inhabited for a long time. Sembiran, a village in northern Bali, was believed to have been home to the people of the Ice Age, proven by the discovery of stone axes and adzes.

Further discoveries of more sophisticated stone tools, agricultural techniques and basic pottery at Cekik in Bali's far west, point to the people of the Neolithic era. At Cekik, there is evidence of a settlement together with burial sites of around a hundred people thought to be from the Neolithic through to the Bronze Age.

Bali was busy with trade from as early as 200 BC. The prasasti, or metal inscriptions, Bali's earliest written records from the ninth century AD, show a significant Buddhist and Hindu influence; especially in the statues, bronzes and rock-cut caves around Gunung Kawi and Goa Gajah.

Balinese society was pretty sophisticated by about 900 AD Their marriage portrait of the Balinese King Udayana to East Java's Princess Mahendratta is captured in a stone carving in the Pura Korah Tegipan in the Batur area. Their son, Erlangga, born around 991 AD, later succeeded to the throne of the Javanese kingdom and brought Java and Bali together until his death in 1049.

1343 AD, is an important date in Bali's history. It was then that the whole island was conquered by East Java under the mighty Hindu Majapahit kingdom. This resulted in massive changes in Balinese society, including the introduction of the caste system.

Balinese who did not embrace the changes fled to the isolated and remote mountainous areas hill areas. Their descendants are known today as the Bali Aga or Bali Mula, meaning the "original Balinese" They still live separately in villages like Tenganan near Candi Dasa and Trunyan on the shores of Lake Batur, and maintain their ancient laws and traditional ways.

Bali was unknown to Europeans until the end of the fifteenth century when explorers from Portugal, Spain and England encountered the island while searching for the lucrative spice islands. Bali was marked on their maps as Balle, Ilha Bale or Java Minor, but rarely visited.

Later in the nineteenth century, conflicts in Europe brought massive repercussions in Bali. In 1840, the Dutch envoy, with the very skillful and devious negotiator, Huskus Koopman, began a series of visits to persuade the Balinese to agree to Dutch sovereignty. He managed to make treaties with the regencies of Badung, Klungkung, Buleleng, Karangasem and Tabanan agreeing to a Dutch trade monopoly, while the rajas failed to realize that they had also virtually agreed to give the Dutch sovereignty over their lands and reefs.

The puputan caused quite a stir in Europe and the United States and the Dutch were pressured to moderate their policies in Bali and Indonesia. But having gained control of the island, the Dutch continued with the Ethical Policy of governing, a philosophy and approach, which they claimed upheld Balinese values.

Businesses were not encouraged out to Bali, but KPM, a steamship line started promoting tourism on Bali. The island's first few visitors stepped ashore in the 1920s, and by the 1930s Bali was welcoming around a hundred visitors every month.

Throughout the 19th and 20th century relations with the Dutch were still turbulent resulting in the loss of many lives. In 1949, under continuing world pressure, the UN Security Council ordered the Dutch to withdraw their armed forces and negotiate, instead of dominate.

In 1950, the Republic of Indonesia was formed, with Sukarno as president. While Bali is part of Indonesia, there are significant religious, historic and cultural differences with Java and the other main islands. Present day Bali remains independent with a strong Hindu / Buddhist in a country dominated by Islam, retaining a certain amount of autonomy from Jakarta.