Yumbel originated from the small fort of San Felipe de Austria, raised in 1585 by Governor Alonso de Sotomayor, on the cerro del Centinela (Hill of the Sentinel). This fort was destroyed by the Mapuche and replaced in 1603, by Governor Alonso de Ribera as fort Santa Lucia de Yumbel. Destroyed in 1621 it was rebuilt the same year. It remained in use until 1648 when it was abandoned and its garrison sent to the fort of Nacimiento, Chile. Governor Ángel de Peredo again constructed it in 1663 as fort Nuestra Señora de Almudena. When Francisco de Meneses Brito populated it three years later he renamed it San Carlos de Austria de Yumbel. During the term of Diego González Montero Justiniano a town that had evolved was given the name of Santa Lucia de Yumbel. Governor Antonio de Guill y Gonzaga gave it the recognition as a town in 1766. It grew little until the Chilean War of Independence when it was occupied by both sides at times and then was burned by the Spanish guerrilla Juan Manuel Picó and the end of 1820.

The town was reduced to ruins in the earthquake of February 20, 1835, and was reestablished to the north of the old location on August 29, 1836. It alternated for some time with the town of San Luis Gonzaga as the capital of the Department of Rere, until the decree of June 2, 1853 confirmed Yumbel as the capital. On March 19, 1871 Yumbel was made a city.

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