The town's name derives from the praia, or beach, from the Latin word pelagium, meaning "open sea." During the 10th-11th centuries, Praiano was once the summer residence of the doges of the Duchy of Amalfi.
During the Angevin period, a fortified tower, the Assiola, was constructed to defend the town. Praiano had an important local silk industry, however, it disappeared during the 19th century. With the discovery of corals in the vicinity around the 1800s, Praiano's economy was revitalized, mainly focusing on the fishing and tourism industries ever since
