There are several legends about who founded Bansko. According to one of them, Bansko was founded by people who lived in Dobarsko, a village in Rila, itself according to a legend founded by the blinded army of Tsar Samuil.

Another legend claims that Bansko was founded by an Italian painter by the name of Ciociolino, thus the existense of the name Chucholin in Bansko.

Still according to another legend it was a Slavic tribe called the Peruns, who lived in Pirin and worshiped Perun, that founded the village later to become a town. There are a number of ethnographic texts, legends, prayers and oratories, which lend credence to this legend.

The archeological traces of the inhabitants of Bansko and the Razlog Valley in general date to the early periods of the Roman Empire.

There are several housing structures at the outskirts of the town, which date to 100 BC. However, there is no consensus nor credible theory on who these people were.

Until 5th October 1912, Bansko was a part of the Ottoman Empire, but enjoyed a quasi self-rule autonomy granted by the sultan. The town was ruled by an assembly of the elders, while justice was administered by the Turkish judge in Razlog. It was incorporated in Bulgaria in 1912 as a result of the First Balkan War.

Bansko, once mainly a stockbreeding and travelling merchant community, has nowadays become a center of winter and summer tourism. The numerous lakes and the proximity to the Pirin, Rila and Rhodope mountain ranges makes Bansko a unique environment for both Winter and Summer tourism.

A new state of the art gondola lift was built in 2003 with the capacity to move seven thousand skiers per hour.

 Several other gondolas and ski lifts are in the process of being built. These developments, along with the construction of extensive recreational facilities around the gondola and the three new Golf courses planned for the area, have made Bansko a popular and growing destination both for investors and holiday makers alike.

 The nearby village of Banya, located only 5 km from the town, is known for its 27 thermal mineral springs, as well as this there is developing investor interest in the surrounding villages for there more traditional houses and log homes.

 The area of the Razlog valley also offers mountain biking, white rafting, horse riding, rambling and mountain climbing and from Spring 2008 the first PGA accredited golf course in the area will be ready to play.

- Highest lift 2560m

- 85 km of ski pistes

- Cross country trails 9 km

- 8 beginner ski slopes (blue)

- 11 intermediate ski slopes (red) 

- 1 Advanced slope (black)

- 15 ski lifts (1 gondola, 7 high-speed chairs, 7 drags) 

- magnificent off piste skiing and boarding (not for the faint hearted)