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Sunset Beach occupies the southwestern portion of Brunswick County near the North Carolina-South Carolina state line. The region's human history extends far beyond the development of the modern beach town. Indigenous peoples lived throughout the coastal Carolinas and depended on estuaries, rivers, forests, wetlands, and maritime resources. European settlement later introduced farms, plantations, timber operations, and small communities across Brunswick County. For generations, however, the barrier islands remained considerably less developed than the mainland because their shifting sands, tidal waterways, and exposure to Atlantic storms made permanent settlement challenging.

The modern history of Sunset Beach is closely connected to the twentieth-century transformation of the Brunswick Islands into vacation and residential destinations. The community began developing in earnest during the mid-twentieth century as improved roads and growing automobile ownership made remote stretches of the North Carolina coast accessible to more visitors. Residential lots, cottages, and vacation properties gradually appeared on the barrier island and surrounding mainland. Rather than becoming a large commercial resort, Sunset Beach developed a reputation for a quieter and more residential style of coastal tourism.

Transportation has played an especially important role in Sunset Beach's history. For decades, access to the island was provided by a distinctive pontoon swing bridge across the Intracoastal Waterway. The bridge became one of the community's most recognizable landmarks and operated by opening to allow boats to pass. As population and visitor traffic increased, a modern high-rise bridge eventually replaced the older structure, greatly improving access to the island. The change symbolized Sunset Beach's transition from a relatively isolated beach community into a more accessible part of the rapidly growing Brunswick County coast.

Natural conservation has remained particularly important to Sunset Beach's identity. Bird Island, immediately southwest of the developed portion of the barrier island, became widely valued for its undeveloped dunes, marshes, wildlife habitats, and expansive shoreline. The preservation of Bird Island helped protect a significant stretch of coastal environment from intensive development. The area is also known for the Kindred Spirit Mailbox, a longstanding local tradition where visitors leave written thoughts and reflections, adding an unusual cultural dimension to the natural landscape.

As southeastern Brunswick County grew, the mainland portion of Sunset Beach developed alongside the island. Golf courses, residential communities, restaurants, shops, and services expanded to serve permanent residents, retirees, seasonal homeowners, and vacationers. The area's location between Wilmington and Myrtle Beach provided access to two larger metropolitan and tourism markets while allowing Sunset Beach to retain a distinctive identity. Nearby Calabash, known for its seafood tradition, and Ocean Isle Beach further contribute to the regional appeal.

Today, Sunset Beach is known for its broad shoreline, coastal scenery, residential neighborhoods, golf communities, and relaxed atmosphere. Its housing stock includes traditional beach cottages, elevated coastal homes, condominiums, mainland residences, and newer construction. Permanent residents and seasonal property owners enjoy boating, fishing, golf, beach recreation, and easy access to neighboring coastal communities. Despite substantial growth throughout Brunswick County, Sunset Beach continues to distinguish itself through its combination of natural preservation, residential appeal, and quieter coastal character.