In the early years of the 19th century, when the entire Ifugao area was under the jurisdiction of the old Mountain Province, Lamut was a barrio of the municipality of Kiangan. The southwest portion described as Mabatobato began to be occupied by Ilocano groups from Nueva Vizcaya and the Ilocos provinces. The settlers were attracted to the place because of its proximity to the Lamut river and the abundance of wildlife. It was the abundance of food that the place was called Lamut, which means “food” in the Ilocano dialect.

During the American-Japanese war, people from various places assembled at Lamut where a division of the U.S. Army made camp. These people eventually settled and populated Lamut after the war.

As the population increased, a bill to create the place as a municipality was introduced in congress by then Congressman Luis Hora. On April 5, 1959, by virtue of Republic Act 2111, Lamut formally became a municipality composed of the barrios of Panopdopan, Payon Bugan (now Nayon), Mabatobato and Hapid. Just like the name “Lamut”, the names of these barrios also connote the primary land use and value of these places. Panopdopan comes from the Ifugao root word “dopdop” which literally means an original vegetation that had been “pressed close to the earth ”implying to new inhabitants that it had been previously settled. Payon Bugan literally means “rice field of Bugan”,(Bugan is the generic name of an Ifugao woman). Mabatobato meaning “rocky” describes the land at the foot of this hilly region.  Hapid is the leaf component of the betel nut chew, which is a common social network element within an Ifugao community.

Over the years, these 4 barrios were subdivided further into eighteen (18) barangays namely: Ambasa, Bimpal, Hapid, Jolowon, Lawig, Lucban, Mabatobato, Magulon, Nayon, Panopdopan, Payawan, Pugol, Poblacion East, Poblacion West, Pieza, Sanafe, Salamague, and Umilag.

Lamut is one of the eleven (11) municipalities of the Province of Ifugao, often described as the gateway to the Ifugao Rice Terraces.

It is presently classified as a fourth class municipality.