Prior to European settlement, the land that is now Highland Village was inhabited by indigenous groups, most notably the Wichita and Comanche tribes, who moved through the region following bison herds. In the mid-to-late 19th century, European-American settlers arrived, utilizing the area primarily for ranching and small-scale farming.
The modern history of Highland Village began in the mid-20th century as the Dallas-Fort Worth area expanded. In 1963, a group of local residents decided to incorporate the area to avoid annexation by the neighboring, rapidly growing city of Lewisville. In February 1963, Highland Village officially became an incorporated town, initially consisting of a few hundred residents living in ranch-style properties.
The completion of nearby infrastructure and the general economic boom of the DFW Metroplex triggered rapid residential development in the 1970s and 1980s. Large master-planned subdivisions replaced open fields, and the city transitioned from a rural outpost into a highly developed suburban community. In recent decades, Highland Village has focused on commercial revitalization, trail expansion, and maintaining its identity as a premier suburban enclave.