The history of Puducherry (or Pondicherry) can be categorised into two periods- Pre Colonial Period and Colonial Period. Puducherry was a part of the Pallava kingdom of Kanchipuram in the fourth century AD. Then came the Chola dynasty during the tenth century AD, replaced by the Pandya Dynasty. Naikship of Gingee ruled Puducherry during the 14th Century which was then conquered by the Sultan of Bijapur. It was during this time, when the Portuguese and Danish merchants used the location as the trading center.

The colonial period began with Portuguese since they were the first Europeans to trade in textile in 1521. The 17th century marked the onset of colonial era in India. The French East India Company set up its trading centre at Puducherry in 1673. The Dutch captured Puthucherry in 1693 but restored it to France by the Treaty of Ryswick in 1699. The French acquired Mahe in the 1720s, Yanam in 1731, and Karaikal in 1738. On January 16, 1761, the British captured Puducherry from the French, but returned it following the Treaty of Paris in 1763. It was again captured by the British in 1793 during the Wars of the French Revolution, but once again restored to France in 1814. When the British attained power over the whole India in the late 1850s, they permitted the French to maintain their settlements in the country.

Puducherry, Mahe, Yanam, Karaikal and Chandernagar remained a part of French India until 1954. But after India's independence in 1947, an agreement between France and India in 1948 agreed to an election in France's Indian controls to choose their political fate. After ruling Puducherry for one hundred and thirty eight years, French finally left the Indian shores on 31st October, 1954 following De Facto transfer of power. In 1962, it became a Union Territory to be administered by the President of India.

Even though the French left Puducherry, the French spirit can still be observed in the very design of the township. The buildings, streets, gardens, and restaurants, the French influence still prevail prominently.