Etymologically, “Babadag”, name received by the settlement in the Middle Age, means “the mountain of the father”. The legend assigns the settlement foundation to Baba-Saltîk-Dede, the leader of a group consisting in 10000 – 12000 Seljuk Turks. He asked the approval for staying in this area to the Byzantine emperor Mihail the VIIIth Paleologue. In 1262-1263, the emperor approved the group settlement on the Razim Lake shore in order to strengthen the Danube’s mouths empire border.

The first historical mention of Babadag as the ultimate locality dominated by Tartars is dated in 1330-1331 and it belongs to the Arabian traveller Ibn Battuta.

Beginning with XV century, Dobrudja is integrated into the Ottoman Empire and Babadag becomes an important military, economic and administrative centre. After 1616, the Silistra pashalik headquarters settles down in Babadag. It becomes the main concentration camp of the Ottoman armies for the expeditions orientated to Poland and Russia. The frequent Russian – Turkish and Russian – Austrian – Turkish wars from the second half of XVIII century and the beginning of the next one, especially the Russian – Turkish war from 1768 – 1774, when the town is attacked and destroyed, lead to the decreasing of the economic potential of the town. It becomes “caza”’s headquarters as part of Tulcea sangiac.

After the Independence War (1877-1878), the locality is liberated and starts its development as part of Romanian state.

The most important remained vestiges belong to XVII-XIX A.D.: the tower of the Turkish Medieval fortress elevated in time of Murad IV, Ali-Gazi Pasha Mosque (the Romanian oldest monument of Moslem art) – elevated at the beginning of XVII century, the grave of Ali-Gazi Pasha, the grave of Sari-Saltîk Baba (the dervish who colonized Seljuk Turks in this region), Panaghia House - built in XIX century which became museal objective, the water pump “Yemeklik ceşmeşi” (built by the vizier Iusuf Pasha in XVIII century).

The region where the town is located keeps inhabitancy traces from ancient times. 2.5 km from the town, on the Babadag Lake shore, at the point named “Cetăţuie”, archaeological excavations revealed a settlement dated in the first epoch of Iron. In the same area inhabitancy traces from Getic period (IV-III B.C.), Roman-Byzantine epoch and a necropolis from the Early Middle Age (IX-X A.D.) were discovered.

5 km from the town, still on the Babadag Lake shore, at the point named “Topraichioi”, a Roman-Byzantine fortification was investigated. Still at the north, a tumular necropolis is present; at the southern extremity of the locality, a rural settlement dated in Early Roman period was identified.