Known as Ragusa until 1918, Dubrovnik was originally settled by Roman refugees from the Greek city of Epidaurus in the seventh century. They fled the approaching Slavs, first stopping at the future Cavtat and finally settling on an island they called Ragusa. The Slavs camped on the mainland opposite the island. The Slavs named their settlement Dubrovnik, meaning forest clearing. Over time the strait was filled in, creating a single city with a mixed Latin-Slavic character. Bordering the Ottoman Empire, Ragusa became a flourishing center for shipping and commerce, achieving city-state status in the 14th century. It rivaled Venice in importance as an Adriatic maritime power. A severe earthquake in 1667, killing 5,000 people including the city's Rector, brought a sudden close to this chapter in its history. Few people noticed when Napoleon conquered the city in 1808. With Napoleon's defeat, Ragusa was awarded to the Habsburg Empire, adding a Germanic influence to the Latin-Slavic blend.

Ragusa was very advanced in its social services, providing medical care in 1301. Europe's third oldest continuously operating pharmacy, opened in the Franciscan Monastery in 1317. This was followed by a home for the aged in 1347 and a quarantine hospital in 1377. The slave trade was abolished in 1418, when the Republic of Ragusa began flying white flags featuring the Latin word "Libertas" on its ships. This atmosphere led to the arrival of Jews fleeing the Inquisition in Spain and Portugal.

Although Dubrovnik was shelled by the Yugoslavian army after Croatia's secession from the Federal Republic (the high walls were built to protect the city from sea and land based attacks), the Croatians made its reconstruction a top priority, even before the capital city, Zagreb. Dubrovnik has been listed as one of UNESCO's World Heritage sites since 1979.