The first European settler was Captain Thomas Paddon who first encountered the area during a lengthy beach walk when his coastal survey ship was unable to leave Ballina.  it was around 1877. Evans Head is named after a marine surveyor, Lt Evans, RN who carried out the first marine survey of the coastline in the area.

Along with others, Paddon scoured the local beaches for alluvial gold in the late 1870s. At that time Chinamans Beach was worked by some 300 Chinese miners and McAuleys Lead was established about 25 km from Evans Head.

Paddon settled at the river mouth, building a hotel from cedar logs washed up on the beach. He and his family later pioneered the application of scientific methods to oyster farming. Both his son, Jim, and his grandson, Evans, gained world titles in rowing. Jim became the first president of the local surf life-saving club and Evans pioneered the Australian prawning industry. The town boasts that it was the first prawning port in Australia.

The area began to attract a few regular holiday-makers in the early 20th century, largely from Kyogle and Casino, and a store was opened at Evans Head in 1919. At the time, the only other buildings, amidst the dense heath, were a wine shop, two boarding houses and a few private homes. 

They were soon supplemented by a butchery and a bakery. The first public school was opened in 1920 and a community hall, built in 1921, was used for church services and motion pictures. A restaurant and banking facilities were established in 1925 and a post office c.1930.

The town grew rapidly when the RAAF established a bombing gunnery school in 1940 which, at its peak, had 1,776 personnel. The bridge over the Evans River was built in 1962.

The Evans Head Air Weapons Range is located near the town. It has been used by the Royal Australian Air Force since 13 July 1949.

Today Evans Head is a popular coastal town and holiday resort, playing host to one of the largest holiday parks in NSW. It is sandwiched between Bundjalung National Park and Broadwater National Park. There is a wide curved beach that is popular for fishing, surfing and swimming.

It is home to the Illawong Hotel, an RSL club and one of the largest holiday parks in NSW. The Park  has almost 600 sites and is located within walking distance of all the town amenities.

The town has two supermarkets, two butchers, a number of clothing stores, cafes and other eateries that cater for the tourist population. Whilst the population is less than 3,000 people that number swells in school holidays.

The 1874 wreck of a timber schooner, Pilot, is visible on the beach north of the town in times of high erosion.

The aerodrome hosts one of the few retired F-111 aircraft in Australia and a museum with a number of authentic aircraft on display.