The neighborhood was named Yameco, a corruption of the word yamecah, meaning "beaver", in the language spoken by the Lenape, the Native Americans who lived in the area at the time of first European contact. The liquid "y" sound of English is spelled with a "j" in Dutch, the language of the first people to write about the area; the English retained this Dutch spelling, but, after repeated reading and speaking of "Jamaica", slowly replaced the liquid sound with the hard "j" of the English pronunciation of the name today. (In the Caribbean, the aboriginal Arawaks named their island Xaymaca, "land of wood and water", and the "x" spelling in Spanish was in time transformed to the hard "j" of the modern English name, "Jamaica".)

Jamaica Avenue was an ancient trail for tribes from as far away as the Ohio River and the Great Lakes, coming to trade skins and furs for wampum. It was in 1655 that the first settlers paid the Native Americans with two guns, a coat, and some powder and lead, for the land lying between the old trail and "Beaver Pond" (now filled in; what is now Tuckerton Street north of Liberty Avenue runs through the site of the old pond, and Beaver Road was named for its western edge). Dutch Director-General Peter Stuyvesant dubbed the area Rustdorp ("rest-town") in granting the 1656 land patent.

The English took over in 1664 and made it part of the county of Yorkshire. In 1683, when the Crown divided the colony of New York into counties, Jamaica became the county seat of Queens County, one of the original counties of New York.

Colonial Jamaica had a band of 56 minutemen who played an active part in the Battle of Long Island, the outcome of which led to the occupation of the New York City area by British troops during most of the American Revolutionary War. Rufus King, a signer of the United States Constitution, relocated here in 1805. He added to a modest 18th-century farmhouse, creating the manor which stands on the site today. King Manor was restored at the turn of the 21st century to its former glory, and houses King Manor Museum.

By 1776, Jamaica had become a trading post for farmers and their produce. For more than a century, their horse-drawn carts plodded along Jamaica Avenue, then called King's Highway. The Jamaica Post Office opened September 25, 1794, and was the only post office in the present-day Boroughs of Queens or Brooklyn before 1803. Union Hall Academy for boys, and Union Hall Seminary for girls, were chartered in 1787. The Academy eventually attracted students from all over the United States and the West Indies. The public school system was started in 1813 with funds of $125. Jamaica Village, the first village on Long Island, was incorporated in 1814 with its boundaries being from the present-day Van Wyck Expressway (on the west) and Jamaica Avenue (on the north, later Hillside Avenue) to Farmers Boulevard (on the east) and Linden Boulevard (on the south) in what is now St. Albans. By 1834, the Brooklyn and Jamaica Railroad company had completed a line to Jamaica.

In 1850, the former Kings Highway (now Jamaica Avenue) became the Brooklyn and Jamaica Plank Road, complete with toll gate. In 1866, tracks were laid for a horsecar line, and 20 years later it was electrified, the first in the state. On January 1, 1898, Queens became part of the City of New York, and Jamaica became the county seat.

The present Jamaica station of the Long Island Rail Road was completed in 1913, and the BMT Jamaica Line arrived in 1918, followed by the IND Queens Boulevard Line in 1936 and the IND/BMT Archer Avenue Lines in 1988, the latter of which replaced the eastern portion of the Jamaica Line that was torn down in 1977–85. The 1920s and 1930s saw the building of the Valencia Theatre (now restored by the Tabernacle of Prayer), the "futuristic" Kurtz furniture store and the Roxanne Building. In the 1970s, it became the headquarters for the Islamic Society of North America.

The many foreclosures and the high level of unemployment of the 2000s and early 2010s induced many black people to move from Jamaica to the South, as part of the New Great Migration.

A December 2012 junkyard fire required the help of 170 firemen to extinguish.

On October 23, 2014, the neighborhood was the site of a terrorist hatchet attack on two police officers of the New York City Police Department. The police later killed the attacker.

The First Reformed Church, Grace Episcopal Church Complex, Jamaica Chamber of Commerce Building, Jamaica Savings Bank, King Manor, J. Kurtz and Sons Store Building, La Casina, Office of the Register, Prospect Cemetery, St. Monica's Church, Sidewalk Clock at 161-11 Jamaica Avenue, New York, NY, Trans World Airlines Flight Center, and United States Post Office are listed on the National Register of Historic Places.

Based on data from the 2010 United States Census, the population of Jamaica was 53,751, an increase of 1,902 (3.5%) from the 51,849 counted in 2000. Covering an area of 1,084.85 acres (439.02 ha), the neighborhood had a population density of 49.5 inhabitants per acre (31,700/sq mi; 12,200/km²).

The racial makeup of the neighborhood was 3.6% (1,949) Non-Hispanic White, 22.2% (11,946) African American, 0.9% (466) Native American, 24.3% (13,073) Asian, 0.1% (66) Pacific Islander, 5.2% (2,814) from other races, and 4.9% (2,647) from two or more races. Hispanic or Latino of any race were 38.7% (20,790) of the population.

The entirety of Community Board 12, which mainly comprises Jamaica but also includes Hollis, had 232,911 inhabitants as of NYC Health's 2018 Community Health Profile, with an average life expectancy of 80.5 years.^{:2, 20} This is slightly lower than the median life expectancy of 81.2 for all New York City neighborhoods.^{:53 (PDF p. 84)} Most inhabitants are youth and middle-aged adults: 22% are between the ages of between 0–17, 27% between 25 and 44, and 27% between 45 and 64. The ratio of college-aged and elderly residents was lower, at 10% and 14% respectively.

As of 2017, the median household income in Community Board 12 was $61,670. In 2018, an estimated 20% of Jamaica and Hollis residents lived in poverty, compared to 19% in all of Queens and 20% in all of New York City. One in eight residents (12%) were unemployed, compared to 8% in Queens and 9% in New York City. Rent burden, or the percentage of residents who have difficulty paying their rent, is 56% in Jamaica and Hollis, higher than the boroughwide and citywide rates of 53% and 51% respectively. Based on this calculation, as of 2018, Jamaica and Hollis are considered to be high-income relative to the rest of the city and not gentrifying.^:7

Jamaica is large and has a diverse population. It is mostly composed of minority populations, namely African Americans, Hispanics, and Asians.

Jamaica was not always as diverse as it is today. Throughout the 19th to early 20th centuries, Jamaica was mainly populated with whites as new Irish immigrants settled around the places known today as Downtown and Baisley Pond Park. In the 1950s, however, what was later called white flight began and middle-income African Americans started taking their place. After the 1970s, as housing prices began to tumble, many Hispanic such as Salvadorans, Colombians, Dominicans, and West Indian immigrants moved in. These ethnic groups tended to stay more towards the Jamaica Avenue and South Jamaica areas. Immigration from other countries did not become widespread until the late 1990s and early 2000s. Gentrification and decrease in crime attracted many families to Jamaica's safe havens; Hillside Avenue reflects this trend. Along 150th to 161st streets, much of the stores and restaurants typify South American and Caribbean cultures.

Farther east is the rapidly growing East Indian community. Mainly spurred on by the Jamaica Muslim Center, Bangladeshis have flocked to this area due to easy transit access and the numerous Bangladeshi stores and restaurants lining 167th and 168th Streets. Bangladeshis are the most rapidly growing ethnic group here; however, it is also an African-American commercial area. Many Sri Lankans also live in this area for similar reasons as the Bangladeshi community, reflected by the numerous food and grocery establishments along Hillside Avenue catering to the community. As well as the large South Asian community, significant Filipino and African communities thrive in Jamaica, along with the neighboring Filipino community in Queens Village and the historic, well established African-American community residing in Jamaica.

From 151st Street and into 164th Street, many groceries and restaurants are representative of the West Indies. Mainly of Guyanese and Trinidadian origin, these merchants serve their respective populations in and around the Jamaica Center area. Many East Indian shops are located east from 167th Street to 171st Street. Mainly supported by the ever-growing Bangladeshi population, thousands of South Asians come here to shop for Bangladeshi goods. Also there are restaurants such as "Sagar", "Ambala", "Ghoroa", and countless more in the Bangladeshi stronghold here. Some people call this area another "Little South Asia" similar to that of Jackson Heights. Jamaica is another South Asian ethnic enclave in New York City, as South Asian immigration and the city's South Asian population has grown rapidly.