Kabacan got its name from the word “Ka-abacan” which means the source of abundance. People from far flung barangays used to come to the place and upon returning home they brought with them many commodities of their livelihood.
When the Second World War broke out and the Japanese Imperial Army occupies the country, the Rio Grande Rubber Estate was sold by the Filipino Incorporators to the Japanese Imperial Government. It became the site for the provisional municipal government with Cenon Doctolero as the appointed Mayor.
Immediately after the war, Kabacan again resumed its former Municipal District status with Datu Mateo Lumambas as its District Mayor. Through Executive Order No. 82, dated August 18, 1947, Kabacan became a regular municipality.