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Evidence of prehistoric animal habitation, such as saber-toothed cats and mammoths, is present in Ralph B. Clark Regional Park in the northwest of the city.Europeans first passed through the area in 1769 when Gaspar de Portolà led a Spanish expedition north to Monterey. From the description recorded in the diary of Father Juan Crespi, it seems likely that the party camped on July 29 near present-day Laguna Lake, in the Sunny Hills area.

After establishment of Mission San Gabriel Arcangel in 1771, the local Tongva people were dubbed "Gabrieliños" by the Spanish. In 1837, the Fullerton area became part of Rancho San Juan Cajón de Santa Ana, granted to Juan Pacifico Ontiveros, a Spanish soldier.^{[citation needed]}

Ontiveros began to sell parcels of the Rancho to migrant Americans settling and developing California in the aftermath of the 1849 Gold Rush, including Massachusetts native Abel Stearns. In the 1860s, Stearns sold in turn to Domingo Bastanchury, a Basque shepherd.^{[citation needed]}

In 1886 while in the area on a duck hunting vacation, Malden brothers George and Edward Amerige, heard rumors that the California Central Railroad, a subsidiary of the Santa Fe Railway, was looking for land. Sensing opportunity, they arranged to buy 430 acres (1.7 km²) north of Anaheim for approximately $68,000.^{[citation needed]}

They then began negotiations with George H. Fullerton, president of the Pacific Land and Improvement Company, also a Santa Fe subsidiary. They offered free right-of-way and half interest in the land to the railroad if Fullerton's survey were revised to include the proposed town site, and on July 5, 1887 Edward Amerige formally staked his claim at what is now the intersection of Harbor Boulevard and Commonwealth Avenue.^{[citation needed]}

In 1894 Charles Chapman, a retired Chicago publisher and a descendant of John "Johnny Appleseed" Chapman, purchased an orange orchard in eastern Fullerton. The Valencia variety of oranges he promoted from his Santa Ysabel Ranch, well suited to the local climate, proved a boon to producers; Fullerton boasted more orange groves than any other municipality in the United States. Cultivation of walnuts and avocados also flourished, and the Western railroad town became an agricultural center. Fullerton was incorporated in 1904, but not officially recognized until 1907, due to conflicts at that time.^{[citation needed]}

Drilling for petroleum began in 1880 with the discovery of the Brea-Olinda Oil Field and fueled the first real boom, peaking in the 1920s. Construction reflected the vogue for Spanish Colonial and Italian Renaissance-inspired architecture, as in the historic Fox Fullerton Theatre (erected 1925); the home of Walter and Adella Muckenthaler, designed by Frank K. Benchley (erected 1924); and the city's chief landmark, the Plummer Auditorium and clock tower (erected 1930). Fullerton College was established at its present location at Chapman Avenue and Lemon Street in 1913. Meanwhile, the city banned all overnight street parking in 1924— a law enforced to the present day, unless an area is specifically exempted. The period from 1910 to 1950 represented a golden age for the city which like other Southern California cities were marked with elegant architecture ranging from the Beaux Arts Movement to the distinctive California Mediterranean architecture, which in turn were surrounded by bucolic farms and parks. Significant public works projects were constructed during this period, including the conversion of a southwestern sewer farm into Fullerton Municipal Airport at the behest of Placentia ranchers and aviators William and Robert Dowling in 1927. Following the depression, concentration of industry, a depressed farming economy, and cheap land development shattered the earlier period quality of life. Through the mid-1900s the economy shifted toward food processing rather than food production, as well as manufacturing; southeastern Fullerton became an industrial center. Val Vita Food Products (later Hunt Wesson and today part of ConAgra Foods, Inc.) began operating a citrus juice plant in western Fullerton in 1932. By 1941 it had become the largest food processing company in the US. In 1934 A.W. Leo, Tom Yates and Ralph Harrison developed the first Hawaiian Punch recipe in a converted garage in Fullerton. The city also became a producer of aerospace equipment, electrical and electronic components, navigation systems, and laboratory instruments.^{[citation needed]}

In 1949 Dick Riedel and Bill Barris piloted the Sunkist Lady, a modified Aeronca Sedan, out of the Fullerton airport to set an endurance flight record of 1,008 hours and 2 minutes.^{[citation needed]}

Also in 1949, Leo Fender developed and refined the world's first commercially successful solid-body electric guitar, the Fender Telecaster.

Although Fullerton, like other Southern California cities, had experienced an expansion of population due to housing development, this increased by an order of magnitude during the post war years. Fullerton's population soared after World War II as American veterans migrated to California, bought housing in the land development which destroyed the surrounding farming and park areas, and in particular after the construction of Interstate 5 and development in neighboring Anaheim.

To serve the growing population, the California State Legislature authorized Orange County State College in 1957, which began operating out of Fullerton high schools in 1959. In 1963, it moved to its present campus on State College Boulevard, and later, after several name-changes, was finally redesignated California State University, Fullerton. Other institutions followed, earning Fullerton a reputation as an "Education City." The Fullerton Arboretum, a 26-acre (105,000 m²) botanical garden, opened in the northeastern part of the city adjacent the campus in 1979.

Manufacturing growth leveled off as ever-soaring property prices, increasing environmental regulation, traffic, and other pressures increased. By the late 20th century the city had lost much of its rural character in favor of suburban housing tracts and shopping centers.

The first years of the 21st century have seen several political issues played out against a backdrop of class division (between the more affluent northern and western parts of the city and the southern portion of the city, which borders Anaheim), rapidly diminishing supplies of undeveloped land, and demographic changes (including the influx of Asian and Latino immigrants into an area previously dominated by Caucasian Americans).

As in many cities, growth and development are contentious issues. In the 1990s, the downtown commercial district had become economically depressed, and was known mainly for being an area of sleepy antique stores and small shops. A symbol of downtown's problems was the Fox Theatre, a local landmark, which had fallen into disrepair. As of November 2004, a fundraising drive had accumulated sufficient funds to buy the theater, but not yet enough money to restore it. By 2006, restoration was started.

During this same period, the downtown area (a.k.a. DTF), especially south of Commonwealth Avenue (a.k.a. SOCO), has become more of a busy entertainment district, described by the OC Weekly as "Bourbon Street West." In less than five years, some 30 businesses that sell alcohol have opened, making the downtown area much more active at night. Ranging from a mixture of Mexican cantinas and Asian bars to Jazz, local venues and music stores, with the festive atmosphere have come problems such as public drunkenness, fights and a shortage of parking. In 2008, City Manager Chris Meyer called together department head and the finance department and reported to the city council that the Restaurant Overlay District (established December 2002)was costing the city $935,000 over and above the sales taxes collected. Then four officers were hired for downtown, bringing the costs to $1,600,000 a year. The ROD had abolished condition use; a new ordinance to establish restrictions was drafted and adopted by the city council in 2008. a police task force last year^{[clarification needed][when?]} has addressed some of these problems.

The 293-acre (1.19 km²) Hughes Aircraft Company's Ground Systems Group campus in western Fullerton was redeveloped into a major new residential and commercial district, called Amerige Heights, in 2001–2004. This development was accompanied by extreme shifts in neighborhood property values, first dropping precipitously in the late 1980s to early 1990s as the former Hughes employees sold their houses, and then rising rapidly as part of a general increase in real estate values throughout Orange County.

In 2000, there were 44,771 housing units at an average density of 2,016.7 per square mile (778.7/km²). There were 43,609 households, out of which 33.0% had children under the age of 18 living with them, 51.8% were married couples living together, 11.0% had a female householder with no husband present, and 32.1% were non-families. 23.5% of all households were made up of individuals, and 7.3% had someone living alone who was 65 years of age or older. The average household size was 2.83 and the average family size was 3.37.

In the city, the population was spread out, with 25.1% under the age of 18, 11.5% from 18 to 24, 32.3% from 25 to 44, 19.8% from 45 to 64, and 11.3% who were 65 years of age or older. The median age was 33 years. For every 100 females, there were 97.7 males. For every 100 females age 18 and over, there were 96.1 males.

The median income for a household in the city was $57,345 (Orange County 2005), and the median income for a family was $75,700. Males had a median income of $40,674 versus $31,677 for females. The per capita income for the city was $23,370. About 8.0% of families and 11.4% of the population were below the poverty line, including 13.6% of those under age 18 and 5.4% of those age 65 or over.

The 2010 United States Census reported that Fullerton had a population of 135,161. The population density was 6,043.9 people per square mile (2,333.6/km²). The racial makeup of Fullerton was 72,845 (53.9%) White, 3,138 (2.3%) African American, 842 (0.6%) Native American, 30,788 (22.8%) Asian, 321 (0.2%) Pacific Islander, 21,439 (15.9%) from other races, and 5,788 (4.3%) from two or more races. Hispanic or Latino of any race were 46,501 persons (34.4%). Non-Hispanic Whites were 38.2% of the population, down from 79.0% in 1980.

The Census reported that 132,084 people (97.7% of the population) lived in households, 2,318 (1.7%) lived in non-institutionalized group quarters, and 759 (0.6%) were institutionalized.

There were 45,391 households, out of which 16,155 (35.6%) had children under the age of 18 living in them, 23,240 (51.2%) were opposite-sex married couples living together, 5,502 (12.1%) had a female householder with no husband present, 2,505 (5.5%) had a male householder with no wife present. There were 2,366 (5.2%) unmarried opposite-sex partnerships, and 290 (0.6%) same-sex married couples or partnerships. 9,771 households (21.5%) were made up of individuals, and 3,342 (7.4%) had someone living alone who was 65 years of age or older. The average household size was 2.91. There were 31,247 families (68.8% of all households); the average family size was 3.43.

The population was spread out, with 31,558 people (23.3%) under the age of 18, 17,522 people (13.0%) aged 18 to 24, 37,764 people (27.9%) aged 25 to 44, 32,465 people (24.0%) aged 45 to 64, and 15,852 people (11.7%) who were 65 years of age or older. The median age was 34.8 years. For every 100 females, there were 96.6 males. For every 100 females age 18 and over, there were 94.4 males.

There were 47,869 housing units at an average density of 2,140.5 per square mile (826.5/km²), of which 24,600 (54.2%) were owner-occupied, and 20,791 (45.8%) were occupied by renters. The homeowner vacancy rate was 1.1%; the rental vacancy rate was 7.0%. 73,127 people (54.1% of the population) lived in owner-occupied housing units and 58,957 people (43.6%) lived in rental housing units.

According to the 2010 United States Census, Fullerton had a median household income of $67,617, with 14.6% of the population living below the federal poverty line.