Founded in 1933, it soon became an important regional port, thanks to its natural harbor (the Chaunsky Bay), the development of the Northern Sea Route and discovery of tin in the mine of Pyrkakai (later renamed into Red Army ) about 70 km away from the city. Later also other fields of tin and then gold were discovered there, and so by 1950 the settlement had around 1500 people already.

For some time Pevek was not even marked in maps. On April 6, 1967 it became a city.