Utsalady, originally known by the Indian name Doksk Ad, was first settled by white settlers in 1853. In 1855, the bark Anandyr sailed the first cargo of ship spars to the French shipyards at Brest. A sawmill began operating in 1857, and the first lumber export to Shanghai followed in 1860. By 1870, the community had 54 houses and 147 people, along with a blacksmith shop, telegraph, saloon, shipyard, and school. A Masonic hall was added in 1872, and in 1874 a granary was built to store Skagit grain. By 1883, sailing ships were carrying a daily lumber production of 74,000 bd./ft. to world markets. Utsalady also served as a point of departure for early white settlers in the Stillaguamish and Skagit valleys.