In the year 1896 when the Spanish forces had occupied the rest of the Philippines Archipelago, one of the occupied provinces is the Cagayan Valley. During the period, Spanish soldiers had to go from one place to another, just to conquer the island. As the years goes by when the forces under General Emilio Aguinaldo exchange fire with the much stronger Spanish soldier, there was a strong and heavy lost between the parties. While the battle was going on, some Spanish soldier got lost in the enemy line. There were only few people during the time on this place. Roads are not even constructed but instead they used trails.

During that time, there were no artesian wells so that residents in the place used to get their waters for drinking in the river, streams and dug in well.

One early morning, an old women went to fetch water in the well, unknowingly that some Spanish soldier were coming too. As soon as the old woman reaches the well, she was frightened to see Spanish soldiers on horseback. She was trembling in fear but one Spanish soldier consoled her and ask question instead of Spanish. “Que lugar este?”, pointing her. She asked “me?” in the dialect. All she thought they might be asking her name so she said   “Estefania”. “ Muchas Gracias”. And they went believing that the name of the place was Estefania. From that time on, the barangay was known to be Estefania.            

The was legally created under Republic  Act  No. 3590.