Kobuk was founded in 1899 as a supply point for mining activities in the Cosmos Hills to the north, and was then called Shungnak. A trading post, school, and Friends Mission drew area residents to the settlement. Due to river erosion and flooding, the village was relocated in the 1920s to a new site 10 miles downstream, which was called "Kochuk," now Shungnak. The few who remained at the village renamed it Kobuk. Ice jams on the River cause high water each year. In May 1973, a flood covered the entire village. In October 1973, the City was incorporated.
A federally recognized tribe is located in the community -- the Native Village of Kobuk. 93.6% of the population are Alaska Native or part Native. It is an Inupiat Eskimo village practicing a traditional subsistence lifestyle. The sale or importation of alcohol is banned in the village. High School students attend school in Shungnak.

During the 2000 U.S. Census, there were 45 total housing units, and 19 were vacant. 11 of these vacant housing units are used only seasonally. 29 residents were employed. The unemployment rate at that time was 0%, although 55.38% of all adults were not in the work force. The median household income was $30,750, per capita income was $9,845, and 28.57% of residents were living below the poverty level.

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