Bali has been inhabited since early prehistoric times firstly by descendants of a prehistoric race who migrated through mainland Asia to the Indonesian archipelago, thought to have first settled in Bali around 3000 BC. Stone tools dating from this time have been found near the village of Cekik in the island's west.

The First European contact with Bali is thought to have been when Dutch explorer Cornelis de Houtman arrived in 1597, though a Portuguese ship had foundered off the Bukit Peninsula as early as 1585. Dutch rule over Bali came later, was more aggressively fought for, and was never as well established as in other parts of Indonesia such as Java and Maluku.