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Julita was previously called "Tambuco." This thriving municipality in the eastern part of Leyte got its name due to the Jesuit missionaries who used to hire native guides in the propagation of the Christian faith among the continuous towns of Burauen, Dulag and Dagami. These Friars, before their departure for Dulag, had to stop at a certain place called Mohon where the guides usually left them to journey by themselves to Dulag. This place where these native guides used to depart from the Friars came later to be called "Tambuco" meaning "point of departure." As time went on, this point became a prosperous settlement rich in wild game and other products.

The first person to recognize the place was Lakatan, who accidentally discovered the fertile land conductive to the growth of almost any kind of agricultural product. Enchanted by the beautiful place, he immediately went home and convinced his family and his friends to settle in the place he discovered. He was gradually joined by other settlers and in 1601 it became a sitio of Dulag and later on became one of its barrios. However, when Dagami became an independent municipality from Dulag, Tambuco was annexed to it as one of its barrios. Tambuco became a prosperous community until a strong hurricane swept over it destroying practically everything, forcing the people to migrate to nearby places and towns. Tambuco again deteriorated into a vast wilderness.

In 1788, a road was constructed linking the town of Burauen to Dulag and Tambuco was once more settled. Traders who traveled on foot or horseback used to stop at Tambuco which necessitated the alteration of the name from "Tambuco" to "Hinulatan" meaning "waiting place," for it became the sanctuary of merchants and traders who had to stay overnight. Francisco Caladcad, with a few others, decided to clear the abandoned place and settle there. He became the leader of the new settlers. He was the one who initiated the movement to change the name "Hinulatan" to "Julita" in honor of his beautiful daughter who was born there. The young daughter grew into a beautiful lady who was also the richest in the entire barrio. Suitors from different places came to court the fair Julita, thus her name was used to denote the place. In 1877, Friar Manuel Benavente of Burauen who often visited Julita to assist the people in their spiritual needs, constructed a little chapel. Shortly afterwards Mateo Trinchera became the leader of the municipality and under him Julita became a jurisdictional barrio of Burauen. Two months later, through his ceaseless efforts, Julita became an independent municipality. He worked at once to change the name from Julita to San Roque in honor of the patron saint of the town. Due to financial shortcomings, however, it became a barrio of Burauen once more and resumed its former name, Julita.

It was at that time when a crusade against illiteracy was launched. A Spanish school was established and Maestra Joaquina Anota was the first teacher. From 1901 to 1904, Aguiles became the Capitan of Julita. At this period a church was erected on the spot where the present Catholic Church of Julita now stands. The building of a two-story school building, which was later destroyed by a strong typhoon, followed this. To replace the one destroyed, another school was built in 1905 in the plaza along the road leading to Hindang.

During the Japanese occupation, Julita was made an independent puppet municipality. But when the Philippines was liberated from the Japanese invaders, Julita returned to its former status as a barrio of Burauen. It remained a barrio until May 12, 1950 when it became a de jure municipality by virtue of a bill approved by congress and inaugurated as a municipality on July 4, 1950 with Juan Echon as the first mayor.