Sand, sand, and more sand. Pensacola Beach is a barrier island located south of the Gulf Breeze peninsula that serves as a protector of the mainland from hurricanes. This shifting island had few inhabitants before the Spanish established their second settlement. A presidio was built on the island in 1722 where the governor thought the community could be protected from raiding natives and other Europeans. Similar to Pensacola's first settlement, this colony was also decimated by a hurricane that surged over buildings and sprinkled the residents in every direction.

The island remained largely unoccupied until 1829 when Fort Pickens was built as a response to the War of 1812. Commissioned by William Chase, the fort is located at the west end of the island. Fort Pickens, now a part of the National Park Service, was occupied during the Civil War by Union troops. During the night of October 9, 1861 General Anderson, under orders by General Bragg, led over 1,000 troops to the island for a surprise attack that resulted in the Battle of Santa Rosa Island.

After the close of the Civil War the fort was used for one year as a temporary holding facility for Geronimo and other Apache Indians that were being held prisoners.

In the early 1920s, after WWI, the military began installing gun batteries on and around the site of the old fort. The guns were used for practice, and while there were rumors of German U-boats off the shore during WWII, the station did not see any direct action.

The automobile plus the three-mile bridge started it all. In June of 1931 the three-mile bridge opened from Pensacola to Gulf Breeze and at the same time a smaller bridge to the island opened. The projects of the bridge coincided with the opening of the Casino on the main beach. The Casino, while not directly a place for gambling, was a place of entertainment for beachgoers with a gift shop, restaurant, and events such as live-music and boxing tournaments. The beach became a popular destination and with the overwhelming popularity of the automobile the visitors wanted to come and go or stay as they wanted. Small cabins were some of the first buildings. As the desire to go to the beach grew, contractors and builders rushed in to build houses and commercial buildings for the growing number of residents. The county encouraged people to buy on the beach with the promise of a "tax-free" residence. While this issue is still being debated, it helped the beach's growth.

The Casino was eventually torn down in the 1960s and was replaced with other businesses on the main beach that is still named "Casino Beach." The Santa Rosa Island Authority, which is the main governing authority on the beach, keeps the beach clean and safe.

Hurricanes still cause major problems to the beach community, as there is now significant development and commercial businesses that rely on the beach. After hurricanes have flooded the beach and moved the sand, a replenishment effort involving putting sand back on the beach has been made in the 2000s to keep the beach the same.

Before 2010 the greatest threat to Pensacola Beach was a hurricane, but now the beach has suffered another disaster. The oil spill on April 20, 2010 caused massive damage to the Gulf and sea life, leaving "tar balls" along the once white beaches. Cleanup of the beaches has been effective, making the beach an enjoyable place once again.