Archaeological evidence suggests that the island has been inhabited at least from the Warring States Period onwards. During the times of the Han Dynasty, the island was settled by members of the Liu family which resulted in the present-day name.
Besides the stunning seashore scenery, Liugong Island is well-known for a tragic military defeat. In 1894, Japan launched an invasive war against China, also called the Jiawu War. Liugong Island serves as a memorial of this influential sea battle. The museum takes the Beiyang Navy and Sino-Japanese War of 1894 as its theme. Many other sites and cultural artifacts of the Jiawu War remain here, such as the Headquarters of the Beiyang Navy, Memorial Hall of Beiyang Soldiers, marines and three emplacements. In addition, there is also a Sino-Japanese Sea Battle Demonstration Museum, which wholly displays the history of Beiyang Navy with buildings, sculptures and paintings.
Besides, the fresh air on the island, the agreeable climate, the small fluctuation of the temperature between the day and night, and an annual average temperature of 12℃, make it an ideal place for tourism, summer resort and recuperation.