Calabash is a part of a 48,000-acre grant made to Landgrave Thomas Smith in 1691. Prior to 1750, The Boundary House was built as a place of rendezvous for travelers. During the late 1700s, the Altson family owned most of present-day Calabash at Little River Neck. In the late 1800s the area was called Pea Landing because of the growing and shipping of peanuts to Wilmington. Around 1890, Samuel Thomas purchased Hickory Hall Plantation and his descendants live in Calabash to this day. Calabash became known for its seafood restaurants in the late 1940s and, subsequently, as the "Seafood Capital of the World." Calabash was incorporated in 1973.

According to local lore, in the 1930s fishermen brought in their catch and were met by the locals to make their purchases. Calabash quickly became known for its fine quality of fresh shrimp and fish. The fishing crews were fed under the trees, and the aromatic smell of fresh fish cooking in big pots prompted residents to buy any leftover cooked seafood. "Calabash style" seafood was born when Clinton Morse, a local businessman, began serving up tubs of the deep-fried seafood that had been dipped in a light seasoned batter, cooked golden brown and served very hot. These open-air picnics were the beginning of the many original family seafood restaurants that are now run by descendants of the founders. Rumor has it that Jimmy Durante's signature sign-off, "Good-night, Mrs. Calabash, wherever you are," was aimed at the owner of a particular restaurant here.

Calabash sits on the banks of the Intracoastal Waterway and retains much of its original fishing-village atmosphere. Restaurants abound, and deep-sea fishing boats are docked in town waiting to take you on the adventure of your life. Golf courses are nearby and there are many small boutiques and art shops as well as one very large store full of souvenirs, Christmas decorations and more. Though small, with nearly 1,440 year-round residents, Calabash is abutted on the west by the town of Carolina Shores, a residential community with a shopping center that includes a chain grocery store within its limits and is located on U.S. 17 South. Its location at the North Carolina/South Carolina border makes Calabash only a hop, skip and a jump from Myrtle Beach's shopping and entertainment.