Founded in the 16th century, Salaga emerged as a leading West African trade center under the Mande leader Dyakpa Ndewura. It became internationally known as the "Timbuktu of the south" for its cosmopolitan population and busy kola, beads, textiles, and gold trade.

By the 18th–19th centuries, Salaga had become one of West Africa’s largest slave markets. Enslaved people from northern regions were sold here in exchange for cowries, kola, and gold, then transported via coastal or Trans-Saharan routes.

In 1892, a civil war known as the Sack of Salaga disrupted trade and depopulated the area significantly.

For decades afterward, the site was neglected even turning into a lorry station. But in July 2024, the Ghana Tourism Authority inaugurated renovations, restoring the slave market, wells, memorial structures, and visitor facilities.