Cape Verde was a colony of the Portuguese Empire from the initial settlement of the Cape Verde Islands in 1462 until the independence of Cape Verde in 1975.

The islands of Cape Verde were first discovered by Europeans in 1460-62 by Prince Henry the Navigator (Son of King John I) and Antonio Noli, in the service of Henry's relative King Afonso V. The southeastern islands, including the largest island Santiago, were discovered in 1460 by António de Noli and Diogo Gomes. The remaining northwestern islands São Nicolau, São Vicente and Santo Antão were discovered in 1461 or 1462 by Diogo Afonso. There is no evidence of human settlement on Cape Verde prior to the arrival of the Portuguese.

In 1462, the Portuguese founded the town of Ribeira Grande (now Cidade Velha) on the south coast of Santiago. The settlement became a key port of call for Portuguese colonisation in both Africa and South America. In the 16th and 17th centuries, it was a centre of maritime trade of points among Africa, the Cape of Good Hope, Brazil in South America, and the Caribbean. Due to its proximity to the African coast, it was an essential platform for the Atlantic trade of enslaved Africans. Other early Portuguese settlements were São Filipe on the island of Fogo (between 1470 and 1490), Praia on Santiago (before 1516), Ribeira Grande on Santo Antão (mid 16th century), and Ribeira Brava on São Nicolau (1653).

Between 1492 and 1497, Manuel I of Portugal exiled thousands of conversos, Jews forced to accept baptism and conversion to Christianity but considered suspect, to São Tomé, Príncipe, and Cape Verde. They were allowed to engage in trade.

Freelance traders were referred to as lançados, who were often, but not always, of Jewish origin. Most married or had unions with African women, creating close trade ties with their families and clans.

The riches of Ribeira Grande and conflicts between Portugal and rival colonial powers France and Britain attracted pirate attacks, including those by Francis Drake (1585) and Jacques Cassard (1712). Despite the construction of Forte Real de São Filipe in 1587-93, Ribeira Grande remained vulnerable and went into decline. The capital was moved to Praia in 1770.

The eruption of the volcano Pico do Fogo in 1680 covered much of the island of Fogo in ash, which forced many inhabitants to flee to the nearby island of Brava. From the end of the 18th century, whaling ships from North America started hunting whales around the Azores and the Cape Verde Islands. They used the harbours of Brava to stock up on supplies and drinking water. They hired men from Brava as sailors, and several of these settled around the Massachusetts whaling port of New Bedford.

The exploitation of salt on the island of Sal took a rise from around 1800. The port city of Mindelo grew rapidly after 1838, when a coal depot was established to supply ships on Atlantic routes. In the course of the 19th century, the Plateau of Praia was completely redeveloped with streets according to a grid plan, lined with grand colonial buildings and mansions. Slavery was abolished in Cape Verde in 1876.