In 1775 a Spanish land grant was given to Etienne Boudreaux to develop what would become Laurel Valley Sugarcane Plantation. By the 1790s this thriving settlement had become an increasingly important stop along the Bayou Lafourche trading route that linked New Orleans with the Bayou Teche region. Laurel Valley still remains as one of the few intact nineteenth century sugarcane plantations in Louisiana, and the sugar production industry remains a primary economic driver in Thibodaux and the surrounding areas.
The community was settled in the 18th century. It was incorporated as a town in 1830 under the name Thibodeauxville, in honor of local plantation owner Henry Schuyler Thibodaux, who in 1824 served as acting governor of Louisiana. The name was changed to Thibodeaux in 1838, and the current spelling Thibodaux was officially adopted in 1918.