Situated in a scenic valley on a narrow fjord, Larsen Bay is a hub of commercial and sport fishing activity on Kodiak Island's west coast. Set along Uyak Bay and surrounded by forested mountains and rich marine waters, the village has deep Alutiiq roots, and subsistence activities such as fishing, hunting and gathering remain central to daily life.

Originally, Larsen Bay was an Alutiiq village known as Uyaqsaq. The area has been inhabited for thousands of years, long before the Russian fur traders established a presence in the 18th century. Later, Scandinavian settlers and commercial fishing interests influenced the community's development, shaping it into the village it is today. The name was changed to Larsen Bay in the mid-to late 19th century after Peter Larsen, a furrier, hunter and guide from Unga Island who made his name well-known among early non-Native visitors and settlers. Larsen Bay was officially incorporated as a city in 1974, formalizing its role as a remote fishing village shaped by subsistence traditions, the rise and decline of the cannery economy, and enduring Alutiiq culture. Accessible only by air or water, the city offers world-class lodges that lure anglers from around the world for some of the best fishing in the archipelago. 

The modern community grew around the Larsen Bay Cannery, which operated for much of the 20th century and helped establish the village into the community it is today. Fishing continues to be the backbone of the local economy, with residents engaged in commercial, subsistence, and sport fishing. Known for its scenic beauty, abundant wildlife, and close-knit population, Larsen Bay offers a glimpse into the enduring maritime culture of Kodiak Island.