The Croatian name of the town is derived from the word dubrava, while the Latin name Ragusa - Rausa originated from the name of the island where the first settlement was established (Lave, Lausa). Dubr-ovnik was probably founded in the first half of the 7th century, upon the fall of the nearby Epidaurum (today's Cavtat) during the Avaro-Slavic invasion on Dalmatia. Opposite of that location, at the foot of Srd Mount, developed a Croatian settlement under the name of Dubrovnik, after which, in the course of time, the entire town was named. The spatial separation was created by levelling and filling up of the present Placa, where the core of an integrated town developed. From its establishment the town was under the protection of the Byzantine Empire (for a certain period, the Byzantine strategist also resided here); during the Crusades it came under the sovereignty of Venice (1205-1358), and by the Peace Treaty of Zadar in 1358 it became part of the Hungarian-Croatian Kingdom. Having been granted the entire self-government (bound to pay only a tribute to the king and providing assistance with its fleet), from that moment Dubr-ovnik started its life as a free state that reached its peak in the 15th and the 16th centuries. A crisis of Mediterranean shipping and especially a catastrophic earthquake in 1667 put Dubrovnik in a very difficult economic position. In such a situation Dubrovnik saw the beginning of the Napoleonic wars. The French entered Dubrovnik in 1806; in 1808 Marshal Marmont abolished the Dubrovnik Republic (the name was in use from the 15th c.). Pursuant to the resolutions of the Vienna Congress in 1815, Dubrovnik was annexed to Austria.

During the period of independence of Dubrovnik, the state administration was in hands of the aristocracy; the administrative bodies were the Upper Council and the Lower Council (from 1238) and the Senate (from 1253). The head of the state was the Duke, elected for a term of office of one month. In the 13th century Dubrovnik gained the island of Lastovo, and in the 14th century also Ston, the Peljesac Peninsula and the island of Mljet. In the course of several centuries Dubrovnik grew into the most powerful economic centre on the eastern coast of the Adriatic, trading both in the Orient and the Occident, developing a powerful fleet of merchant and war ships (shipyards in Gruz, Lopud and in Sudurd on Sipan; an institution for marine insurance from the second half of the 14th c.) and maintaining diplomatic relations with a number of countries and cities.