Oriental was settled by Louis B. Midyette in the 1870’s. Legend says that "Uncle Lou", as he was known, anchored his sailboat in the protected waters of Oriental to escape a gale. He was sailing from New Bern back to his home in Dare County where he was a farmer and a fisherman. Storytellers claim that the next morning Lou went ashore and climbed a tree. He was captured by the beautiful landscape and all of the waterfront created by the many creeks. He returned home to persuade others to join his family in moving to the area.

From the early 1900's Oriental's economy was supported by lumber, fishing and farming. The train came to town, providing both cargo and passenger service (train service stopped in the 1950's). The last sawmill closed just about the time that sailors began to discover the village - in the early 1960's. Just 4 sailboats called Oriental home in 1960 - today the number has grown to over 2,700. Oriental is now known as the "Sailing Capital Of North Carolina."

Fishing remains an important part of the town. Today fishing trawlers still grace the harbor, bringing in a catch of shrimp, crab or perhaps flounder depending on the season.

Conveniently located along the Intracoastal Waterway (ICW), Oriental is a popular stop for "snowbirds" cruising south for the winter or heading north for the summer. Many residents will tell you that their first visit to Oriental was by water while cruising coastal North Carolina and that they too decided to make Oriental their home. The population is 875, with many newcomers settling in the areas just outside the incorporated village.

The United States Post Office Department established a post office here back in 1886. Lou Midyette was named postmaster of what was then known as Smith’s Creek. Lou's wife, Rebecca, thought the village needed a better name.

Rebecca had found the nameplate from the sunken ship "Oriental" on the beaches of the Outer Banks (some stories say she just saw it in a Manteo home - but either way the name "Oriental" made an impression on her).

The sailing steamer Oriental was built in 1861 in Philadelphia, and was used as a Federal transport ship in the Civil War. She met her fate in May of 1862, shipwrecked off Bodie Island 33 miles north of Cape Hatteras. The passengers and crew were saved. Today, one of the Oriental's portholes is on display at the Oriental History Museum. The fate of the "Oriental" nameplate is unknown.

The village became known as Oriental a few years after the post office was established, and was incorporated in 1899.