The origins of Harar are obscure, and the main source of information is oral tradition. There is a myth, according to which, in July 1256, there arrived from the Arab Peninsula 405 sheikhs who chose this site to found the city. Some sources indicate that Harar came into being around the 10th century or even earlier. Islam was introduced to Ethiopia in the 9th century. Three mosques of Harar have been dated to the 10th century (Aw Mansur and Garad Muhammad Abogh in Jugol, and Aw Machad Mosque outside). Between 1277 and 1285, a neighboring lord created a coalition of five Muslim principalities. From that time on, the trade was in the hands of the Muslims, and Harar became a principal trading post.
In the 16th century, Harar was established in its present urban form and from 1520 to 1568 it was the capital of the Harari Kingdom. From the second half of the 16th century until the 19th century, Harar was noted as a centre of trade and Islamic learning in the Horn of Africa. In the 17th century it became an independent emirate. Nevertheless, this was also a period of decline, and the population fell from some 50,000 to ca. 12,000.
Due to its fame, Harar attracted the interest of the Egyptians, who occupied it from 1875 to 1885. Following this, in 1887, Harar was conquered by Menelik, the king of Asmaadin and later Emperor of Ethiopia. At this time, the Great Mosque at Faras Magala was destroyed and replaced by an octagonal Orthodox church. Menelik also opened the sixth gate and cut through a new street in the east-west direction. At the end of the 19th century, there was immigration of Indian merchants, who introduced the Indian house type and the combined version.
From 1938 to 1942, Ethiopia was occupied by the Italians. In the subsequent period, due to various problems, Ethiopia and with it also Harar have been subject to famine, civil war, and economic decline, including for example land reform, which in reality decreased productivity of agriculture. After the end of the dictatorship in 1991, there was a slight improvement until the war with Eritrea. At the moment, Harar Jugol needs to rebuild its economy on the basis of sustainable development.