Bandera County grew from a sawmill settlement into a cattle trail hub

Bandera County was established on January 25, 1856, from part of Bexar County. The town of Bandera was laid out in 1853 by John James, Charles DeMontel, and John Herndon. They built it around a water-powered lumber mill on the Medina River. Cypress trees along the river provided the wood. In February 1855, sixteen Polish Catholic families arrived from Upper Silesia to work the mill. They built St. Stanislaus Church. The Texas State Historical Association Handbook describes it as the second-oldest Polish parish in the United States.

After the Civil War, Bandera became a starting point for cattle drives north on the Western Trail. Ranchers gathered longhorns from across South Texas in Bandera before heading to markets in Kansas and beyond. Over time, the land proved better suited to smaller animals. By 1880, sheep outnumbered cattle by more than three to one. Mohair from Angora goats became an important export.

The county and town are named after Bandera Pass. The pass is a natural gap in the hills about 12 miles north of town. A Spanish expedition recorded the pass in 1739. The word 'bandera' means 'flag' in Spanish. The exact story behind the name is debated. The TSHA Handbook says it cannot be confirmed from historical Bexar records.