Dinagyang, originally called the Iloilo Ati-Atihan, traces its beginnings to November 1967, when Rev. Fr. Ambrosio Galindez—the first Filipino Rector of the Augustinian Community and Parish Priest of San Jose Parish—introduced the devotion to the Santo Niño after witnessing the Ati-Atihan Festival in Aklan. The following year, in 1968, Fr. Sulpicio Enderez brought to Iloilo a replica of the original Santo Niño de Cebu image.

Upon its arrival at Mandurriao Airport, the people of Iloilo warmly welcomed the image, joined by devotees from Cebu, as a gift to the Parish of San Jose. Led by the Confradia del Santo Niño de Cebu, Iloilo Chapter, the faithful prepared a grand reception, which began at the airport and continued with a street procession through Iloilo.

​

Initially, the celebration was limited to the parish. Inspired by the Ati-Atihan of Ibajay, Aklan—where locals, covered in soot and ashes, danced to mimic the Atis rejoicing over the sale of Panay—the Confradia adopted similar street dancing traditions. These early tribal performances became the foundation of what is now the modern Dinagyang Festival.

In 1977, the Marcos administration encouraged each region to develop festivals to promote tourism and economic growth. Iloilo City chose its own Ati-Atihan as the official project. However, the growing scale of the event became too challenging for the parish alone to manage. That same year, Ilonggo broadcaster and writer Pacifico Sumagpao Sudario coined the name “Dinagyang” to distinguish it from Aklan’s festival. Organizers, along with the Regional Association of National Government Executives, invited an actual Ati tribe from the mountains of Barotac Viejo to perform their traditional dances during the event.

​

From 1978 onward, Dinagyang evolved into a major cultural and religious celebration. Over the years, it has expanded to include diverse activities such as cultural shows, sports competitions, food festivals, beauty pageants, car shows, music events, and various side attractions. Since 2019, the Iloilo Festivals Foundation, Inc. (IFFI) has overseen the festival, succeeding the Iloilo Dinagyang Foundation, Inc. (IDFI), and now also manages other major Iloilo festivities like the Paraw Regatta and Kasadyahan.