Near Pondicherry are the remains of a Roman settlement, Arikamedu, which was a centre of trade between India and Rome in the A.D. 100's and 200's. Pondicherry later became a seat of traditional learning and Vedic culture.
Its earlier name was Vedapuri, after the worship of Vadapuriswara, the local name of the Hindu god, Shiva. A temple to the god was built and rebuilt many times. The earliest remains date back to the A.D. 900's. In the 900's and 1000's, the Chola kings built temples round Pondicherry.

In 1673, the French set up a trading centre at Pondicherry. This centre eventually became the chief French settlement in India. Dutch and British trading companies also wanted trade with India. Wars raged between these European countries and spilled over into the Indian subcontinent.

The Dutch captured Pondicherry in 1693 but returned it to France by the Treaty of Ryswick in 1699. The French acquired Mahe in the 1720's, Yanam in 1731, and Karaikal in 1738. During the Anglo-French wars (1742-1763), Pondicherry changed hands frequently. The British finally returned it to the French in 1814. When the British gained control of the whole of India in the late 1850's, they allowed the French to retain their few settlements in the country, including Pondicherry.

By 1946, the people of Pondicherry were demanding independence from France, and several political parties emerged. When it became known that the British would grant India independence in 1947, the people of Pondicherry demanded to join free India. After independence, India began negotiations with France over the Pondicherry merger issue. Finally, on Nov. 1, 1954, a popular government took over the administration of Pondicherry, making it a union territory of India.