Naguabo is a small town of around 25,000 inhabitants, located in the east coast of the island of Puerto Rico, north of Humacao; south of Río Grande and Ceiba; and east of Las Piedras.

In 1513, the Viceroy Diego Colón ordered to build a town in the estuary of the river Daguao, which was named Santiago de Daguao. The purpose of this town was to protect this part of the Puerto Rican coast from the attacks of the Caribbean Indians. However, Santiago de Daguao was destroyed by these very same Indians in 1514. Later attempts by Spaniards to settle the area were met by hostility from native Indians.

In the early 18th century, wealthy settlers requested the Spanish Crown permission to found a town in the area, which was granted. Naguabo was thus officially founded in July 15, 1821. The name of the city derives from that of the local Indian Chief Naguabo.