Panukulan derived is present name from the Tagalog word "PANULIKAN", the early settlers ( the Dumagats) used to call the place, it being the corner of the Panangatan Point of the main island of Polillo.

In the early twenties, Panukulan is but a barrio of the mother municipality of Polillo. Due to the heavy influx of settlers from the neighboring town of Infanta, the barrios of Libo, Lipata, and Calasumanga was converted into a municipal district on June 21, 1959 by virtue of Republic act No. 2452 and thereafter named as the Municipal District of Panukulan. Ex - Congressman of the 1st District of Quezon, sponsored and worked hard to have the said barrios attained the status of a separate political subdivision.

After fourteen years of existence from a 1st class municipal district to a 6th class municipality, Panukulan achieved marked strides in the main island of Polillo, Panukulan has a total land area of 42,000 square kilometers. It has a fine climate, the wet season being longer than the dry season. It has 12 barangays. Hook bay which is considered by geodetic authorities as the safest and best landlocked bay east of the Philippines promises to be an excellent harbor if developed. Ocean going vessels loading logs for export docked at Hook Bay and even during the pre-war years. The bay is a potential tourist spot and even during the pre - war years. The bay is a potential tourist spot if properly developed. The economy of Panukulan is basically agricultural. The principal crop is coconut, followed by palay, bananas, root crops, and pineapples.

History recorded that the early settlers of Panukulan were the Dumagats. As years rolled by emigrants from the neighboring towns of Infanta and Mauban and reinforced lately by emigrants from the Bicol and Visayan provinces setted in the area. Tagalog is the principal and dominant language followed by the Bicol and Visayan dialects. Almost 90% of the population are Catholics, followed by the Iglesia Ni Cristo, Seventh Day Adventist, Jehova's Witness, and the Fatima.

The early settlers in Panukulan recalled that during the American regime no foreign national ever visited the place. However, in the early twenties Japanese nationals settled in the vicinity of Hook Bay and operated a flourishing logging operations. The people still remember that time when large ocean going vessels, docked at Hook Bay to load logs for export to the United States and Japan. And up coming barrio, Panukulan was one of the progressive barrios of Polillo at the turn of the thirties. Barrio Schools were opened in Panukulan, Libo, and Calasumanga before the outbreak of World War II. The Japanese occupation saw changes in the economic and cultural life of the people. The people did not suffer much during the war years. People from the neighboring town of Infanta evacuated in the area. It is gratifying that Japanese soldiers have not even set foot in many places in Panukulan. Thanks to the guerillas who aided the people.

The post-war years saw rapid changes in the economic life of the people. The progress that has not been achieved during the pre-war years when Panukulan was still a barrio is now a reality. The tangible effects are now felt. Almost all barrios have their own schools. With the creation of Panukulan as a municipality, national and provincial offices have been set up and operating. Municipal strees of the Pobiacion are all cemented, an . adequate Municipal Building and Health Center constructed and a Telecom station maintained. Two barrio high schools, the San Juan Barrio High School and Libo Barrio High School offering complete secondary course are established.

June 24th of every year is the Town Fiesta. However, almost all barrios have their barrio fiestas, aside from the traditional Maytime festivibes and social activities of youth organizations.