n biologistNicholai Miklukho-Maklai was probably the first European to visit the area. In 1871 he stayed at Astrolabe Bay south of present-day Madang for 15 months. He had a good relationship with the local communities before leaving, suffering from malaria. In April 1884 an expedition by the German New Guinea Company led by Otto Finsch and Eduard Dallmann arrived and named the landing point "Friedrich Wilhelmshafen"; however, they felt that the area was unsuitable for a settlement. A subsequent survey in 1888 mentioned good soil conditions that would make a coffee plantation possible. In the summer of 1891 a station was built and by September 1892 was the seat of the provincial administration; however, the Imperial Government Commissioner remained at Stephansort, some 23 kilometers away due to concerns about malaria. The name of "Madang" was used by Papuan natives who had accompanied the German administrators after their home island and only became the official name of the settlement towards the end of the German administration. Although the settlement was expanded from 1893-1894 with warehouses, a sawmill, hospital and other facilities, various ventures, such as the coffee plantations and atap palm processing proved economically ruinous, due to malaria and inclement climate. From 1895 and 1896 several German warships were stationed here for a survey of surrounding waters, during which time a total of 295 men came down with malaria. In 1899 the capital of the New Guinea Company was transferred to Herbertshöhe on the island of New Pomerania. Following World War I, the area was turned over to Australia as part of the League of Nations mandated Territory of New Guinea. The Imperial Japanese Army captured Madang without a fight during World War II in 1942. In September 1943, Australian forces launched a sustained campaign to retake the Finisterre Range and Madang. The town was captured on April 24, 1944, but during the fighting and occupation it was virtually destroyed and had to be rebuilt afterwards.
Madang is viewed by many in the country as being safer and more pleasant for expatriates than the larger cities of Lae and Port Moresby. Because of this, some NGOs have chosen Madang as the location of their main offices in country. CUSO and VSO both have their headquarters in Madang. Save the Children, WWF, and World Vision are also present with branch offices in Madang. As a consequence Madang has a larger number of expatriates working and living in the town than its small population would suggest.
Industry and farming are growing constantly in importance, especially for export. There are the widespread coconut palm plantations on the coast and cardamum is grown in Madang. The Kulili plantation is the second largest of Kar Kar Island's twelve plantations with its more than a thousand coconut palms and cocoa trees. 70% of the cocoa and 50% of the copra produced in Madang province comes from Kar Kar. In Madang province 173 regional languages are spoken, some of them being extremely different from the others.