The original inhabitants of Malaybalay come from the seashores of Northern Mindanao (Misamis Oriental area) but were driven towards the mountains because of pirates and the arrival of Spanish colonizers. Before the final conquest of the central part of Mindanao (Bukidnon area), Sumilao, Linabo, Mailag and Silae has been established by Spanish missionaries (Dominicans and Jesuits). In 1850, Kalasungay (an old settlement site in Malaybalay), was burned down by the Spanish during their final battle with the lumads, in which all male adults were killed and the women and children were taken as hostages. This battle is the last recorded resistance by the original inhabitants against the Spanish conquerors.

A few years after their defeat, the survivors of the battle who fled to Silae slowly returned to the area and established a new settlement near the Sacub River (present-day Rizal Park) under the protection of Datu Mampaalong. Together with 30 other datus, Datu Mampaalong accepted Spanish dominion and embraced Christianity on June 15, 1877, ending the long-standing war between them. On that day, the Spaniards made Malaybalay into a pueblo named Oroquita del Interior with a territory covering the area of what is now the province of Bukidnon; the name of the settlement was retained as Malaybalay.

From 1877 until the coming of the Americans, covering a span of 20 years, capitanes, who were acknowledged tribal chieftains and were appointed by the Spanish missionaries, governed Malaybalay.

In 1850, Malaybalay became a part of the province of Misamis Oriental as a municipal district. The Philippine Commission then headed by Commissioner Dean C. Worcester, Secretary of Interior and a member of the Philippine Commission proposed the separation of Bukidnon from Misamis Oriental Province.

Source: https://en.wikipedia.org/wiki/Malaybalay