During the late 1800s and early 1900s, the Hawaiian Islands emerged as a dominant plantation economy, specializing in the production of sugar, pineapple, and coffee for global exportation. Given the demanding nature of field labor and the unpredictable hot weather in Hawaii, plantation workers required a durable shirt that could withstand these conditions. Consequently, the checkered blue and white denim palaka shirt quickly became the standard work attire in Hawaii. By the early 1930s, this palaka shirt, along with sailor-mokus - blue denim trousers - originally worn by field workers, had essentially become the unofficial national costume of Hawaii, both within and beyond the plantations.

During the early stages of the fashion industry, shirts were meticulously crafted by hand. This process occurred either within households or at specialized tailor shops. These establishments rapidly emerged throughout the islands, particularly in plantation towns and in Honolulu. Dry goods stores provided a wide range of fabrics sourced from various parts of the world. These included printed silk from Japan, raw silk, batik, and rayon from the U.S. mainland, as well as cotton cloth specifically made for kimonos and yukatas. The influence of Asian immigrants, who had long been a part of Hawaiian history, was evident in the fashion trends of that time. Both short- and long-sleeved shirts, as well as women's dresses, drew inspiration from Asian garment designs and were crafted using pre-printed fabrics from China and Japan. These vibrant shirts and dresses paved the way for the modern Aloha wear we know today. In Hawaii, we use the term "ono" to describe something that is not only delicious but also refreshingly cool.

The term "Aloha shirt" may have originated as street slang in the early 1930s. It was used to describe the increasing number of shirts with Oriental and Hawaiian designs that were being created by tailors in Honolulu. Musa-Shiya, the Shirtmaker, was the first to advertise the "Aloha shirt" in the Honolulu Advertiser on June 28, 1935. Their advertisement highlighted the well-tailored nature of the shirts, their beautiful designs, and vibrant colors. Customers could choose between ready-made options or have shirts made to order, with prices starting at 95 cents. Another account suggests that an advertising salesperson from the Honolulu Advertiser and Ellery Chun, the owner of the King-Smith dry goods store, coined the term "Aloha shirt." Mr. Chun went on to officially register a trademark for his Aloha sportswear on July 15, 1936.

Hollywood got involved in promoting Hawaiian clothing, with movie stars, singers, and politicians playing a significant role. The vibrant designs became popular thanks to the likes of Montgomery Cliff, Burt Lancaster, Ernest Borgnine, and Frank Sinatra, who all sported beautiful Hawaiian shirts in the movie "From Here to Eternity." Ginger Rogers showcased seductive satin gowns with Hawaiian patterns, while Bing Crosby rocked a unique combination of a Hawaiian shirt and a porkpie hat. In the 1940s, Betty Grable even posed in a stunning Hawaiian-style swimsuit for a promotional pin-up shot. The iconic "Magnum P.I." Hawaiian shirt worn by Tom Selleck in the 1980s has now found its place in the Smithsonian Museum of American History. Elvis Presley and Jimmy Buffet, along with other stars and cultural icons, also contributed to the mainstream popularity of Hawaiian shirts.