Mentioned in the Hudud al-'alam as a good source for pearls around 982 AD, Kharg was visited by Jean de Thévenot in 1665, who recorded trade at the time with Isfahan and Basra. In 1753 the Dutch Empire established both a trading post and a fort on the island after securing perpetual ownership of the island from Mir Nasáir, the Arab ruler of Bandar Rig, in return for a present of 2000 rupees. In 1766 the Dutch fort was captured by Mir Mahanna, the governor of Bandar Rig.
The island was briefly occupied in 1838 by the British to block the Siege of Herat (1838) but was soon returned. Amoco built and operated the oil terminal on the island. It's property was expropriated after the revolution.