In the past the area of the district was covered with deep forest. Hunters who traveled to hunt wild animals there always lost the way, so they agreed to make meeting points by using Phaeo flags. When people established a new village, they named their village Ban Phaeo. It was controlled by Sam Phran district. Later when the village grew bigger it became a Tambon. In 1925 the government split Tambon Rong Khe, Lak Sam from Ban Bo district and merged it with Tambon Ban Phaeo to form the Ban Phaeo district. The new district was assigned to Samut Sakhon province.