The history of the city of Mabalacat is closely interwoven with its geography, indigenous peoples, and colonial past. The city's name originates from the Kapampangan language and means "a place where there are many balacat trees" — a type of hardwood that once grew in abundance in these parts.
The official date of the settlement's founding is considered to be 1712. Initially, this territory was a dense forest inhabited by the indigenous Aeta people, also known as Negritos. For a long time, Mabalacat was part of the neighbouring town of Bamban but gradually developed as a separate community. An important moment in early history was the establishment of a Catholic mission in 1717 by the priest Andres de San Fulgencio, which marked the beginning of the region's Christianisation.
Several key factors contributed to the city's rapid development. Firstly, its geographical position on an elevated plain protected residents from the floods characteristic of other parts of the Pampanga province. Secondly, the fertile black soils attracted settlers from the lowlands who began actively developing agriculture, cultivating sugar cane and rice. Finally, its location on the trade route between the provinces of Pampanga and Pangasinan made it an important economic point.
Mabalacat's early economy was predominantly agrarian, but the logging of valuable balacat trees, the timber of which was used for building houses and ship masts, also played a significant role. Culturally, the city was formed under the mixed influence of the traditions of the indigenous Aeta people, the culture of the lowland Kapampangans, and Spanish colonisers. This rich heritage is still reflected in local festivals, such as Caragan, named in honour of one of the first Aeta chieftains.