Mahone Bay was first settled during Father Le Loutre's War. The first to arrive were those who lived in Lunenburg, Nova Scotia and had farm lots throughout the peninsula, including Mahone Bay. The people who settled this fairhaven, including the present-day village of Mahone Bay, were foreign protestants who were German, Swiss, and Montbéliardais settlers.
During the French and Indian War (which included the Expulsion of the Acadians), there were nine Native and Acadian (Catholic) raids against the protestant settlers on the Lunenburg Peninsula. The French, Acadians and natives were resisting the British control over Nova Scotia and Acadia. One such raid – the Raid on Lunenburg (1756) – happened just off the shores of Mahone Bay on present-day Covey Island and [John] Rous Island.
Another raid happened on 24 August 1758 in the village of Mahone Bay, when eight Mi'kmaq attacked the family homes of Lay and Brant. While they killed three people in the raid, the Mi'kmaq were unsuccessful in taking their scalps, which was the common practice for payment from the French.
During the War of 1812, the American privateer schooner Young Teazer was trapped off the shores of Mahone Bay by the HMS Hogue (1811). To avoid capture, a crew member of the Young Teazer destroyed his own ship, killing most of the crew
