There is evidence of human habitation in the Dunhuang area as early as 2,000 BC, possibly by people recorded as the Qiang in Chinese history. Its name was also mentioned as part of the homeland of the Yuezhi in the Records of the Grand Historian, although some have argued that this may refer to an unrelated toponym, Dunhong. By the third century BC, the area became dominated by the Xiongnu, but came under Chinese rule during the Han Dynasty after Emperor Wu defeated the Xiongnu in 121 BC.
Dunhuang was one of the four frontier garrison towns (along with Jiuquan, Zhangye and Wuwei) established by the Emperor Wu after the defeat of Xiongnu, and the Chinese built fortifications at Dunhuang and sent settlers there. The name Dunhuang, or Blazing Beacon, refers to the beacons lit to warn of attacks by marauding nomadic tribes. Dunhuang Commandery was probably established shortly after 104 BC.Located in the western end of the Hexi Corridor near the historic junction of the Northern and Southern Silk Roads, Dunhuang was a town of military importance.
"The Great Wall was extended to Dunhuang, and a line of fortified beacon towers stretched westwards into the desert. By the second century AD Dunhuang had a population of more than 76,000 and was a key supply base for caravans that passed through the city: those setting out for the arduous trek across the desert loaded up with water and food supplies, and others arriving from the west gratefully looked upon the mirage-like sight of Dunhuang's walls, which signified safety and comfort. Dunhuang prospered on the heavy flow of traffic. The first Buddhist caves in the Dunhuang area were hewn in 353."
During the time of the Sixteen Kingdoms, Li Gao established the Western Liang here in 400 AD. In 405, the capital of the Western Liang was moved from Dunhuang to Jiuquan. In 421, the Western Liang was conquered by the Northern Liang.
In later centuries, during the Sui and Tang dynasties,
