In the past, Gamay was a barrio of Palapag one of the oldest town of Samar and a reputed as among the most religious. How this town came to be as Gamay is told in legends and stories. One prevalent story believed in by most of the town-folk relates to an alleged conversation that took place between a Spaniard and lady loam-weaver . This visiting Spaniard was reportedly asking the weaver by what name is the place called. Not knowing any Spanish word , the weaver took it was granted that the Spaniard was asking what she was doing, and she reportedly said “Gamay”. In the local dialect, Gamay means fine. It refers to the finest abaca strands as distinguished from Urubayon (medium) and Kadagco-on (thicker strands).

It was during 14th and 15th century when the community known today as Binongto-an (when a town was built) when the first settlers-descendants of safeguarding Malays who migrated to the numerous island now called the Philippine Archipelago, founded the place.

Perhaps it was only in the late 16th or 17th century when Gamay got its name when Christianity reached the shore of the Philippine island brought by the Spaniards.

By this time, Binongto-an had became a flourishing Christian settlement and was then a growing big community. Their belief in their adopted faith brought them the courage to withstand the numerous raids of Muslim bands (popular identified by Moros) during long and bloody Muslim-Christian religious wars. It was due to the continued Moro raids that the people of Binongto-an move to a place called Binayaan and finally decide to start a new settlement near the mouth of the river by the sea.

Until 1947, Gamay was a barrio of Palapag.

Later the American came and the people vehemently fought against them, they finally affected the surrender or more that 400 “Pulajanos” (Revolutionary Soldiers).

As time passed on, the municipality progressed and its population increased.

Gamay was legally created from Palapag with the enactment by congress of the Republic Act No. 90 on February 26, 1947 to be municipality by then the whole island province of Samar, Two years later, after the Republic Act No. 90 was enacted, and the first official of the new municipality were elected and assumed office. It was on November 9, 1965 after overwhelming of a law that Samar was divided into three provinces and Gamay became a municipality of Northern Samar.