The village has medieval origins, and its historic centre still preserves traditional features such as the church square and several ancestral homes. The name “Palautordera” derives from Palau (referring to an ancient fortified house or castle) and the Tordera River, which flows through the municipality. Documented as early as the 11^th century, it formed part of the territory ruled by the barony of Montclús. Around the parish church dedicated to Saint Stephen (mentioned since 1080), a small settlement gradually took shape.

Over the centuries, the village maintained an economy based on agriculture, livestock and forestry, making use of Montseny’s natural resources. In the 19^th and 20^th centuries, improved transport and the growing popularity of hiking tourism turned Sant Esteve into a popular summer destination, marking the beginning of a new chapter more closely tied to tourism and services.