The history of the festival dates back to 1970, when it was started as the "Citizens' Festival" with the intention of getting citizens to participate and having an element of a "tourist festival". In 1979, the festival marked its 10th anniversary, and with the aim of making it a private-sector-led festival, a festival executive committee was formed and the name "Healthy Summer Festival" was adopted, as it was deemed appropriate for a town that had declared itself a healthy city.

On December 1, 1984, the town was declared "The Village Where Stars Fall," and in 1985 the name of the festival was changed to "The Village Where Stars Fall, Ashibetsu Healthy Summer Festival." Named "Healthy Summer Festival" with the idea of "spending the summer in good health," this festival has now become Ashibetsu's signature festival.