Laccadives gained prominence among the seafarers only after arrival of the Portuguese in India. It was known for its finely spun coir, which resulted in attacks on vessels and the islands for the coir but the aborigines fought off these invaders with poisoned weapons and succeeded in ending the Portuguese invasion. Hindu Rajah of Chirakkal ruled the islands. The administration fell into the Muslim house of Arakkal of Cannanore in the mid-16th century. However, the oppressive and unbearable rule soon led the islands to seek help from Tipu Sultan in 1783.

After the battle of Seringapattom in 1799, the islands were annexed to the British East India Company who administered it from Mangalore. In 1847, a severe cyclone hit the island of Andrott and Raja of Chirakkal needed funds to help the people. Sir William Robinson of the East India Company offered a loan to the Rajah, which he readily accepted. However, after four years, the interest on the loan reached such a high that the Rajah could not pay the loan back and in 1854 all the remaining islands were handed over to the East India Company for administration. It was much after independence that the Union Territory was formed in 1956 and the archipelago was named Lakshadweep in 1973.