The community was named after the Hawaiian-language word aloha.[2] The name may have been inspired by the song "Aloha ʻOe".[3]
Aloha was once home to Aloha Mill & Lumber Company. It was founded by R. D. Emerson and W. H. Dole in 1905. The name, a Hawaiian greeting, was chosen by members of the Dole family, who were landowners and business people in Hawaii. In 1920, Aloha Mill & Lumber Co. successfully bid on a unit of timber near Moclips, six miles away from its mill. For the next two years the company toiled at constructing a railroad to the sale site. Heavy rains during the winter months, 25 to 30 inches a month, delayed the start of logging until the summer of 1922.