The Ainu people were early inhabitants of Kuril Islands, although there are few records that predate the 17th century. The Japanese administration first took nominal control of the islands in the Edo period of Japan, in the form of claims by the Matsumae clan. It is claimed that the Japanese knew of the northern islands 370 years ago. On the Shōhō Era Map of Japan (Shōhō kuni ezu (正保国絵図)), a map of Japan made by the Tokugawa shogunate in 1644, there are 39 large and small islands shown northeast of the Shiretoko Peninsula and Cape Nosappu.
While in Russian sources the islands are mentioned for the first time in 1646, the earliest detailed information about them was provided by the explorer Vladimir Atlasov in 1697. In the 18th and early 19th centuries, the Kuril Islands were explored by Danila Antsiferov, I. Kozyrevsky, Ivan Yevreinov, Fyodor Luzhin, Martin Shpanberg, Adam Johann von Krusenstern, Vasily Golovnin, and Henry James Snow.
In 1811, Russian Captain Vasily Golovnin and his crew, who stopped at Kunashir during their hydrographic survey, were captured by retainers of the Nambu clan, and sent to the Matsumae authorities. Because a Japanese trader, Takadaya Kahei, was also captured by Petr Rikord, Captain of a Russian vessel near Kunashir in 1812, Japan and Russia entered into negotiations to establish the border between the two countries.
American whaleships caught right whales off the islands between 1847 and 1892. Three of the ships were wrecked on the islands: two on Urup in 1855 and one on Makanrushi in 1856. In September 1892, the bark Cape Horn Pigeon, of New Bedford, was seized by a Russian schooner north of Kunashir Island and escorted to Vladivostok, where it was detained for nearly two weeks.
The Treaty of Commerce, Navigation and Delimitation was concluded in 1855, and the border was established between Iturup and Urup. This border confirmed that Japanese territory stretched south from Iturup and Russian territory stretched north of Urup. Sakhalin remained a place where people from both countries could live. The Treaty of Saint Petersburg in 1875 resulted in Japan relinquishing all rights over Sakhalin in exchange for Russia ceding all of the Kuril Islands south of Kamchatka.
Since the very end of 19th century, Japanese administration started the forced assimilation of native Ainu people. Also at this time, the Ainu were granted automatic Japanese citizenship, effectively denying them the status of an indigenous group. Many Japanese moved over to former Ainu lands, including Kuril islands. The Ainu were forced to learn Japanese, required to adopt Japanese names, and ordered to cease religious practices such as animal sacrifice and the custom of tattooing. Prior to Japanese colonization (in 1868) there were reportedly just about 100 Ainu living in the Kuril islands.
In 1869, the Meiji government established the Colonization Commission in Sapporo to aid in the development of the northern area. Ezo was renamed Hokkaidō and Kita Ezo later received the name of Karafuto. Eleven provinces and 86 districts were founded by Meiji government and were put under the control of feudal clans. Because the Meiji government could not sufficiently cope with Russians moving to south Sakhalin, Japan negotiated with Russia over control of the Kuril Islands, resulting in the Treaty of Saint Petersburg that ceded the eighteen islands north of Uruppu to Japan and all of Sakhalin to Russia.
Each village had a district forestry system, a marine product examination center, salmon hatchery, post office, police station, elementary school, Shinto temple, and other public facilities. In 1930, 8,300 people lived on Kunashiri island and 6,000 on Etorofu island, and most of them were engaged in coastal and high sea fishing.
While in February 1945 the Yalta Agreement had promised to the Soviet Union South Sakhalin and the Kuril islands in return for entering into World War II against the Japanese, the Soviet Union nevertheless mounted an armed invasion of South Sakhalin at the cost of over 5,000 lives. Japan maintains a claim to the four southernmost islands of Kunashir, Iturup, Shikotan, and the Habomai rocks, together called the Northern Territories (see Kuril Islands dispute).
The Kuril Islands form part of the ring of tectonic instability encircling the Pacific Ocean referred to as the Ring of Fire. The islands themselves are summits of stratovolcanoes that are a direct result of the subduction of the Pacific Plate under the Okhotsk Plate, which forms the Kuril Trench some 200 kilometres (120 mi) east of the islands. The chain has around 100 volcanoes, some 40 of which are active, and many hot springs and fumaroles. There is frequent seismic activity, including a magnitude 8.5 earthquake in 1963 and one of magnitude 8.3 recorded on November 15, 2006, which resulted in tsunami waves up to 1.5 metres (5 ft) reaching the California coast. Raikoke Island, near the centre of the archipelago, has an active volcano which erupted again in June 2019, with emissions reaching 13,000 m.
Gidrostroy, the Kurils' biggest business group with interests in fishing, construction and real estate, built its second fish processing factory on Iturup island in 2006, introducing a state-of-the-art conveyor system.
The main Russian force stationed on the islands is the 18th Machine Gun Artillery Division, which has its headquarters in Goryachiye Klyuchi on Iturup Island. There are also Border Guard Service troops stationed on the islands. In February 2011, Russian President Dmitry Medvedev called for substantial reinforcements of the Kuril Islands defences. Subsequently in 2015, additional anti-aircraft missile systems 'Tor', 'BUK' missile systems, coastal defence missile systems 'Bastion', combat helicopters Ka-52 'Alligator' and 1 'Varshavyanka' project submarine came on defence of Kuril Islands.
The economic rise of the Russian Federation has been seen on the Kurils too. The most visible sign of improvement is the new construction in infrastructure. In 2014, construction workers built a pier and a breakwater in Kitovy Bay, central Iturup, where barges are a major means of transport, sailing between the cove and ships anchored offshore. A new road has been carved through the woods near Kurilsk, the island's biggest village, going to the site of Yuzhno-Kurilsk Mendeleyevo Airport.
As of 2013 , 19,434 people inhabited the Kuril Islands. These include ethnic Russians, Ukrainians, Belarusians, Tatars, Nivkhs, Oroch, and Ainus. Russian Orthodoxy and Islam are the only religions with significant following among the population. Some of the villages are permanently manned by Russian soldiers (especially in Kunashir following recent tensions). Others are inhabited by civilians, which are mostly fishermen, workers of the fish factories, dockers, and social sphere workers (policemen, medics, teachers, etc.). Recent construction works on the islands attracts a lot of migrant workers from the rest of Russia and other Post-Soviet states. As of 2014 , there were only 8 inhabited islands out of a total of 56. Iturup Island is over 60% ethnically Ukrainian. On 8 February 2017 the Russian government gave names to five previously unnamed Kuril islands in Sakhalin Oblast: Derevyanko Island (after Kuzma Derevyanko, 43°22′8″N 146°1′3″E / 43.36889°N 146.01750°E / 43.36889; 146.01750), Gnechko Island (after Alexey Gnechko, 43°48′5″N 146°52′1″E / 43.80139°N 146.86694°E / 43.80139; 146.86694), Gromyko Island (after Andrei Gromyko, 46°14′1″N 150°36′1″E / 46.23361°N 150.60028°E / 46.23361; 150.60028), Farkhutdinov Island (after Igor Farkhutdinov, 43°48′5″N 146°53′2″E / 43.80139°N 146.88389°E / 43.80139; 146.88389) and Shchetinina Island (after Anna Shchetinina, 46°13′7″N 150°34′6″E / 46.21861°N 150.56833°E / 46.21861; 150.56833).
All the islands are under Russian administration. Japan claims the four southernmost islands, including two of the three largest ones (Iturup and Kunashir), as part of its territory as well as Shikotan and the Habomai islets, which has led to the ongoing Kuril Islands dispute. The disputed islands are known in Japan as the country's "Northern Territories". In 2018, Russo-Japanese talks on reunification of islands with Japan resumed.