Byhalia was first occupied by the Chickasaw Native Americans. Later, in 1938, the city of Byhalia was founded. It got its name from a creek that the Native Americans called “Daiyiilah”, which means “White Oak”. The English spelling of that creek is Bihalee, and that is how the city became “Byhalia.” This small town was slow to grow due to neighboring cities growing faster because of the railroad. Byhalia has remained a small town to this day. The city has a rich history with some of the buildings in its quaint downtown area dating as far back as 1884. Unfortunately, a fire in 1970 damaged much of downtown.