Numerous archeological investigations have been done attesting to the use of this area over extended periods of time. Evidence indicates that Birch Bay was inhabited by Semiahmoo, Lummi and Nooksack Indians. Descendants and heirs of the original Indian residents of about 1800 continued to use the resources of the area well into the 20th century. In prehistoric days as well as today, an abundance of shellfish, migratory waterfowl, and salmon drew people to harvest these resources.

The Bay was named by the botanist, Menzies, during the 1792 Vancouver expedition because of the abundance of the black birch trees. At the turn of the century, the huge fir trees of the area were logged with ox and horse teams. Large stumps, with their springboard marks, remain as evidence.