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The first recorded mention of Mevagissey dates from 1313 (when it was known as Porthhilly), although there is evidence of settlement dating back to the Bronze Age.

The old name of the parish was Lamorrick, and it was part of the episcopal manor of Tregear. The church was dedicated to Saints Meva and Ida in 1259 by Bishop Bronescombe and in 1329 Sir Otho Bodrugan appropriated it to Glasney College. The Norman church was cruciform and some Norman work remains but the church was more or less rebuilt in the 15th century. In the Commonwealth period the tower became ruinous and the bells were taken down and sold to a Quaker of St Austell. According to tradition there has been a church on the same site since about 500 AD. Meva may well be the same as St Mewan and Issey is also the patron saint of St Issey.

Mevagissey is home to three Cornish holy wells. The Brass Well and Lady's Well are both situated in the manor of Treleaven, the other holy well is within the gardens of Mevagissey House, the old vicarage.

Towards the end of the 17th century, Porthhilly merged with the hamlet of Lamoreck (or Lamorrick) to make the new village. It was named "Meva hag Ysi", after two Irish saints, St Meva and St Issey (or Ida, hag is the Cornish word for "and"). The modern Cornish name is Lannvorek, after the old parish name. At this time the main sources of income for the village were pilchard fishing and smuggling and the village had at least ten inns, of which the Fountain and the Ship still remain.

Andrew Pears, the founder of Pears' Soap was born in the village in 1768 and set up a barber's shop here until he moved to London in 1789.

The current harbour is built on the site of a medieval quay. The first Act of Parliament allowing the new port to be built was passed in 1774. The inner harbour, consisting of the current East and West Quays, was constructed from this time. An outer harbour was added in 1888, but seriously damaged in a blizzard in 1891. The outer walls were rebuilt by 1897. The harbour was given charitable trust status in 1988.

The Royal National Lifeboat Institution (RNLI) stationed a lifeboat at Portmellon in 1869, but in 1888 moved it to Mevagissey. It was kept afloat in the harbour for a few years but in 1896 was moved into a purpose-built concrete boat house. The following year a new boat, the James Chisholm (RNLI number 403), was installed. This operated until 1930 when the station was closed. The neighbouring station at Fowey had recently been equipped with a motor lifeboat and this could cover the coast around Mevagissey. The old boat house has since been used as an aquarium; that at Portmellon has been converted into a house.

In 1880 there were around sixty fishing-boats engaged in the mackerel fishery and herring and pilchards are also important fisheries. There are currently 63 registered fishing vessels in the harbour worked by 69 fishermen. The harbour also offers tourist fishing trips and there is a regular summer passenger ferry to Fowey.