Incorporated as a town in 1956, Woody Point is an enclave community of Gros Morne National Park.
About the year 1800, Bird and Company established a trading post for fur and salmon there. The first settler was probably John Roberts about 1849. In the 1860s and 1870s, more settlers began to move to the area. Many of these were families who were engaged in the Labrador fishery, as well as moving here for the rich herring fishery.
It was during this growth period, the Lombardy Populars were introduced to the area by an area official. The population increased to 254 in 1884 and by 1901 there were 450 residents. Lobster became an important fish species to Woody Point after a slump in the herring fishery in the 1880's.
From the late 1890s, seasonal work in the lumber woods became important to the economy. In 1922, a fire destroyed the business section of Woody Point; some of the businesses were rebuilt, others were not. During this time, people left to seek work in Corner Brook and Deer Lake.
Tourism has become important to Woody Point since the development of Gros Morne National Park. The community is close to the Tablelands and Green Garden hiking trails, major attractions for park visitors.