Dania was first settled around 1898 and incorporated as a city in 1904. As virtually all the residents then were of Danish descent, they changed the name of the town to Dania. The name was formally changed to Dania Beach in 1999.

In January 1926 the residents voted to merge Dania into Hollywood, then the Great Hurricane of September 1926 wiped out a lot of Hollywood and most of the residents of Dania voted to "unmerge." Some folks voted to stay with Hollywood and that has led to today's disjoint city boundary.

Dania Beach is most known for its extensive jai alai fronton, Dania Jai Alai. Dania Beach is also home to the Boomers! amusement park and the IGFA Fishing Hall of Fame and Museum.