Native American Indians migrated west into Indiana as European settlers took their lands during the late 1600s. The Shawnee, Miami, Delaware, Mohican, and Potawatomi tribes were just a few of these tribes.

In 1679, French-Canadian Robert Cavelier became the first white man to see Indiana. He was searching for a water route to the Pacific Ocean. French fur traders soon followed, establishing trading posts throughout the area. Forts were built during the 1720s in Miami (near Fort Wayne) and Quiatenon (near Lafayette). Vincennes became the first permanent settlement in Indiana about 1732.

Mining also became a big industry. Natural gas was discovered near Portland and oil near Keystone. In 1889, Standard Oil built one of the largest oil refineries in the world in Whiting. Nearby, United States Steel built its largest steel mill and founded the city of Gary. The automobile and other metal-product industries also greatly expanded. In 1911, the Indianapolis Motor Speedway held the first Indianapolis 500 car race.