The once vast pasturelands and forested area, which comprised the present Municipality of Don Carlos, was part of the cattle ranches of the Elizalde’s, the Guingona’s and the Roceses before the outbreak of the Second World War.
After the country obtained its independence from Americans in 1946, the Bukidnon Lumber Company which was owned jointly by Howard Denison and the Fortich family was transferred from Sinangguyan to an area near Lake Pinamaloy, the presence of this sawmill marked the beginning of the continuous inflow of immigrants who were interested to settle in the place either as workers, merchants and as farmers.
As a result, shanties begun to sprout forming a community and a barrio begun to shape at the vicinity of the sawmill. At the time the leaders in the place named the Barrio Menduso derived from the Visayan word Duso meaning push. This term properly described the condition of the road at the time when trucks and buses had to be pushed or towed before they can pass through the area.
In January 1953, the barrio Menduso celebrated its first Barrio Fiesta in honor of the Holy Child , which became a Patron Saint of the locality.
This was also the time that the leaders of the place changed the name to Don Carlos in honor of the late Congressman Carlos Fortich. But before it became a regular municipality, it has experienced a period of transition. That then, President Diosdado Macapagal appointed Atty. Segundino Violon, as acting Mayor for a period until the scheduled regular election.
Finally in 1966, Under Republic Act No. 4800, Don Carlos was covered into a Municipality . During the first Regular Election, the late Teodolo M. Palma, Sr. was elected mayor.