Possibly explored by the Spaniard Álvaro Saavedra in 1528, the group was sighted by the Dutch navigator Willem Schouten in 1616 and named by the British captain Philip Carteret in 1767. Constituted part of a German protectorate in 1884, the islands were captured by Australia in 1914 and were included in the territory mandated to that nation in 1921. They were occupied by Japan from 1942 to 1944 and made part of the UN Trust Territory of New Guinea in 1946. When Papua New Guinea attained its independence in 1975, the islands became part of that country.

The economy of the Admiralty Islands is primarily agricultural, consisting of copra production and some coffee growing. Copper deposits have been located on Manus Island. Manus is heavily forested, and logging is another important industry on the island. The indigenous population, which is primarily Melanesian, engages in fishing and local trading. Many are adherents of the Paliau movement, an indigenous social and religious movement founded by Paliau Maloat after World War II.