While the modern history of Tarlac City began in the late 18th century, the first evidence of a settlement at this site dates back to an even earlier period. Historical records show that as early as 1593, a Spanish military fort (praesidio) existed here, and in 1686, the settlement received the official status of a Spanish town (pueblo). The foundation of the community that became the core of the modern city dates back to 1788, when settlers arrived from the town of Bacolor in Pampanga province. Led by Don Carlos Miguel and Don Narciso Castañeda, these pioneers cleared the land and laid the foundation for future growth. It is believed that the name "Tarlac" is derived from a word in the language of the local Aeta people, used to designate a species of grass or reed that grew abundantly in the area.
The city's rapid development was bolstered by its favorable geographical position on the fertile central plains of Luzon. Ideal conditions for agriculture attracted migrants from neighboring provinces—Pampanga, Zambales, and Bataan. As a result, the economy was initially agrarian, with rice and sugarcane becoming the staple crops that still form the backbone of the region's economy today. The influx of settlers ensured rapid population growth and created a rich cultural diversity. A pivotal event in the city's history was the creation of Tarlac province in 1873, with the town designated as its capital, significantly strengthening its political and economic importance.
The city's cultural life reflects its history. Initially, the Kapampangan language predominated, as the first settlers came from Pampanga. Over time, due to migration patterns, the Ilocano and Tagalog languages also became widely spoken. Infrastructure, including roads, was developed through the collective efforts of the residents, contributing to the further growth and prosperity of Tarlac City.