The most probable thesis on the origins of Sappada, is that the first inhabitants came from a nearby valley further north in most likely what is now known as Austria.

It is thought that the first inhabitants of Sappada came from a village called Innervilgratten, proof of this is in the language they spoke and their way of life. The period was during the 11th Century when in that region of Austria, the Heimfels were in power. Because the Heimfels reigned with great arrogance it is thought a group of people set off on a adventure to find a more tranquil place to live.

The route they took through the valley was covered by forest and rich in game. The travellers asked the patriarch of this region known as Aquileia, if they could occupy the land, he agreed, in return of an annual fee and their promise to remain loyal to him.

So began the clearing of the forest, to create fields for pasture and on the north facing side of the valley, in the sun, a place for them to live.

During the first centuries of life in the valley, there were conflicts over the land as many people a from nearby villages already had claim to the land and those new settlers that were arriving wanted to claim a stake of the land for themselves. However this disagreement was resolved in 1350 when Sappada became part of the region of Cadore and no longer belonged to Carnia.

In 1500 under the rule of the Serenissima (Venice) government there was period of relative peace and prosperity, the demand for timber was great, as it was used to make venetian boats like the "Gondole", and many pepole found work either clearing the forest or transporting the wood.
Then came the French, followed by the Austrians who opened the first schools. In 1852 Sappada became part of the province of Belluno and was no longer part of the province of Udine. Belluno a few years later became a part of Italy in 1866.

During World War I many people fled Sappada as refugees, some going to the centre of Italy to Tuscany and some as far as Campania. There were many battles and bombings in the mountains surrounding Sappada, and one can still see today the evidence of these events. Many of the young locals from Sappada gained honour fighting in the Second World War, particularly those that served in Russia.

Many of the young locals from Sappada gained honour fighting in World War II , particularly those that served in Russia. During the Second World War many people emigrated, due the lack of work in the area, to places such as Germany, Switzerland and other european countries. Some even went as far as Australia and America.

Presently Sappada is a renowned tourist spot for summer and winter holidays, and famous for its local traditions and culture which derive from its rich history.