Sitka was home to the Kiksádi clan of the Tlingit people for centuries prior to the 18th-century arrival of the Russians under the direction of territorial governor Alexander Baranof. The governor coveted the Sitka site for its beauty, mild climate, and economic potential; in the island's massive timber forests he saw raw materials for shipbuilding. Its location offered trading routes as far west as Asia and as far south as California and Hawaii. In 1799 Baranof built St. Michael Archangel—a wooden fort and trading post 6 mi north of the present town.
The Tlingits took exception to the ambitions of their new neighbors. Reluctant to pledge allegiance to the czar and provide free labor, they attacked the settlers and burned their buildings in 1802. Baranof, however, was away on Kodiak at the time. He returned in 1804 with a formidable force—including shipboard cannons—and attacked the Tlingits at their fort near Indian River, site of the present-day 105-acre Sitka National Historical Park, forcing them north to Chichagof Island.
By 1821 the Tlingits had returned to Sitka to trade with the Russians, who were happy to benefit from the tribe's hunting skills. Under Baranof and succeeding managers, the Russian-American Company and the town prospered, becoming known as the Paris of the Pacific. The community built a major shipbuilding and repair facility, sawmills, and forges and even initiated an ice industry, shipping blocks of ice from nearby Swan Lake to the booming San Francisco market.
The town declined after its 1867 transfer from Russia to the United States but became prosperous again during World War II, when it served as a base for the U.S. effort to drive the Japanese from the Aleutian Islands. Today its most important industries are fishing, government, and tourism.