Cocoa Beach was founded by fishermen very early in Florida's history with the first families arriving in Cocoa around 1860. A post office was established at Magnolia Point two miles north and the first commercial building in Cocoa was erected in around 1881. First plats of the new settlement were made in 1882 under the name "Indian River City" on land owned by Captain R. A. Hardee. The name Indian River City was unacceptable to the U.S. Postal authorities who claimed it was too long for use on a postmark The town was renamed for the nearby cocoa refining plant.

The town remained quite small until the founding of the nearby Kennedy Space Center and Cape Canaveral. The area now abounds with museums and memorials associated with the Space Center, and also attracts many visitors for the nearby wildlife refuges adjacent to the Space Center. Cocoa Beach is also one of the closest beaches to the Orlando attractions and many tourists wanting to enjoy Florida's beaches while visiting Disney and the many other destinations choose to stay here.