The resort that is now Atlantic Beach, North Carolina was first visualized in the 1870’s by Appleton Oaksmith, but in July of 1879 he lost four of his daughters in a tragic accident and lost the will to fulfill his dream. John J. Royal of Morehead City and Winfield S. Chadwick of Beaufort then began the construction of Oaksmith’s concept. In 1887 they built the first bathing pavilion on Bogue Banks. Many guests of the 'New Atlantic Hotel' in Morehead City desired to bathe in the ocean surf, but there was no bathing pavilion on the ocean side of Bogue Banks. The facility provided by Royal and Chadwick met this need, and in so doing the resort community of Atlantic Beach was born. Patrons of the Hotel flocked to the newly accessible beach in droves, and a brisk ferry trade to the Banks ensued. This resort had many names over the years including Atlantic View Beach, Ocean Beach and finally Money Island Beach.

In 1926 a group of Morehead City and Beaufort developed a new resort on Bogue Banks and built the first bridge across Bogue Sound. This development became the “Atlantic Beach” we know today. This new resort was comprised of several buildings known as the “Circle”. It contained two bathing pavilions (for men and women) on either side of a large dance hall called the Pavilion. Several accessory buildings were located nearby as well as an office building. These structures were oriental in design, in a style referred to as Pagoda, which differentiated them from past construction. This new beach resort was accessible by motor car while the others were not. This new "Atlantic Beach" prospered, while the older developments which relied on ferry services subsided. On July 20, 1929 fire destroyed nearly the entire resort. The sole surviving building was later moved to an oceanfront lot and is known today as the Pagoda House. It is the oldest known structure in Atlantic Beach.

When the great depression struck in the fall of 1929 the the owners defaulted on their loans and the property acquired new owners. Two new bathhouses, a dance hall named the Casino, and several assorted drink stands were built in 1930, and the beach reopened for business.

In the 1930's the land adjacent to the “Circle” was platted with lots and streets. Lots were sold, and in 1932 the first cottage in the new “Atlantic Beach” was built.

In 1934 Ft. Macon on the eastern end of the Island was regarrisoned for World War II. Artillery pieces were set up, and the Fort Macon became part of the national coastal defense network.

In the late seventies through much of the 1980's the 'Circle' hosted a variety of amusements such as go carts, ferris wheels, rides and arcades. Currently the 'Circle' has been sold by the town of Atlantic Beach, the amusements have been sold at auction, and 3 high rise condominiums are scheduled to be built there. These condominiums will be surrounded by a variety of smaller shops and businesses.