General Overview of the History of Utila
Utila’s history has a cultured legacy which is rich and diverse.
Pre-Columbian Paya Indians were the original descendants of the island. They left many archaeological treasures, which have been spread throughout the higher flat lands of the island.
Colonization by the Spanish began in the early 1500s. Over the century that followed, the Spanish plundered the island for the slave trade and eliminated the island of its indigenous population by the early 1600s.
Britain, during its aggressive attempt to colonize the Caribbean from the Spanish, 
occupied the Bay Islands on and off between 1550 and 1700. During this time, the buccaneers found in the vacated, mostly unprotected islands, a haven for safe harbor and transport. Útila is rich in pirate lore and even presently, scuba divers look for sunken treasure from Captain Morgan’s lost booty from his raid on Panama in 1671.
The British were forced to give back the Bay Islands to the Honduran government in the mid 1800s. It was at this time that the nearly uninhabited islands were being populated by Cayman Islanders and the Bay Islands today, remain rich in Caymanian culture and dialect.
For nearly 200 years Spanish conquistadores and British pirates battled for control of the Bay Islands. For over 150 years Utila has been a part of Honduras. Its unique and wonderful culture is a result of the blending of many different influences including Caymanian, British, Spanish, Honduran, Garfiuna and others
The above text is based on material from the Wikipedia article “Utila”.