In 1658 Giuseppe Branciforti, Prince of Butera, a former Viceroy of Sicily retired here and built a large villa. In 1769 one of the Prince's descendants redesigned the former village into a well planned Baroque town, it immediately became a fashionable resort, and many villas in the popular Sicilian Baroque style were built.

According to some sources, the name Bagheria originates from the Phoenician term Bayharia meaning "land that descends toward the sea." Other sources claim that it derives from the Arabic Bāb al-Gerib, or "windy gateway."

Although the official feast day of St. Joseph, the town's patron saint, is March 19, it's celebrated in Bagheria the first Sunday of August; religious celebrations are held throughout the week leading up to Sunday, when more solemn ceremonies are initiated; the following Monday evening festivities conclude with a fireworks display.

Bagheria was the birthplace of many well-known 20th century figures: poet Ignazio Buttitta, photographer Ferdinando Scianna, artists Renato Guttuso and Nino Garajo, and film director Giuseppe Tornatore.