In 1963, Hawaiʻi faced serious economic challenges due to tsunamis and declining sugar plantations. Helene Hale, a leader on the island, saw the potential of tourism to boost the struggling economy. Specifically, she sent her team, including Gene Wilhelm and George Naʻope, to study the Lahaina Whaling Spree on Maui for ideas. They came back inspired and laid the groundwork for what would become the Merrie Monarch Festival. The festival was aimed at celebrating Hawaiian culture, bringing in tourists, and promoting Indigenous products at a Merrie Monarch Festival Craft Fair.

The Merrie Monarch Festival kicked off in 1964 with various fun contests and events. By 1968, interest had waned until Dottie Thompson took charge as the Executive Director. She revitalized the festival's purpose. Most importantly, she aligned it with King Kalākaua's vision of revitalizing Hawaiian culture. The festival shifted focus in 1971. Specifically, highlighting hula as a central element complimenting the Merrie Monarch Festival Craft Fair. This attracted the top dancers from across the islands.

Over the years, the festival grew exponentially, expanding to include male dancers in 1976. Furthermore, requiring a new stadium in 1978 due to its popularity. Additional days and acts were added in 1980, marking continued success. Today, the Merrie Monarch Festival is a cornerstone of Hawaiian culture. Specifically, it highlights joy, pride, and the rich traditions of the islands. Additionally, the Merrie Monarch Festival Craft Fair vendors continue to draw tourists from around the world.