Andenes was already an important fishing village during the Iron Age. By the early 1900s, it had become one of the largest fishing ports in Norway.
The municipality of Andenes was established on 1 January 1924 when it was separated from Dverberg municipality. Initially, Andenes had 2,213 residents. On 1 January 1964, Andenes was merged with Dverberg and Bjørnskinn municipalities to create the new municipality of Andøy.
In the early 1980s the population of the village of Andenes was 3,770, which made it the largest village in Vesterålen. The downsizing of Andøya Air Station and general population centralization in Norway has led to a dramatic decline in inhabitants over the last 20 years.