Teluk Dalam port came about after the original port in the south of Nias Island was in Lagundri Bay. In 1883, the resulting tsunami from the Krakatau volcano in the Sunda Strait between Sumatra and Java washed the original Teluk Lagundri trade village away. The trade village was moved to the present position in Teluk Dalam.
On 28 March 2005, the 2005 Nias–Simeulue earthquake destroyed many ancient sites and many people were killed. On 2 April 2005, an Australian Sea King helicopter carrying 11 soldiers on a humanitarian mission to help the earthquake victims crashed there, killing nine soldiers.