The Mission San Juan Capistrano was founded more than two hundred years ago as the 7th of a string of 21 missions across the state, and includes a chapel still standing where its founder, Fr. Serra, once celebrated Mass. Today it is a monument to California's multi-cultural history, embracing its Native American, Spanish, Mexican and European heritage. The Mission was originally built as a self sufficient community by the Spanish Padres and Mission Indians, with the Mission as a center for agriculture, industry, education and religion.

The area around Dana Point had two development projects begun in the 1920's, named Dana Point and Capistrano Beach. A combined total of 53 structures were built before both development companies failed in the Great Depression. In the late 1960's, construction began on an artificial harbor in Capistrano Bay. The Dana Point Harbor occupies all of the former Capistrano Bay and extends into the Pacific Ocean, providing 2500 boat slips with breakwater protection.

Incorporated in 1989, the City of Dana Point is named after Richard Henry Dana Jr., an 19th century Harvard-trained lawyer, seaman, and author of the classic sea journal, Two Years Before the Mast. In his journal, Dana documents his voyage from Boston around Cape Horn to California on the merchant ship, Pilgrim. As part of the book, he describes the area once known as Capistrano Bay, as "the most romantic spot on the California coast." Today, Capistrano Bay is known as Dana Point.