The town is named after the old city of Migdala Nunia (Aramaic: "fish tower"), home town of Mary of Magdala (Luke 8:2), and is situated just west of the Kinneret on Tiberias-Rosh Pina road.
In 1908, a small group of German Catholics who identified the site as the birth place of Mary Magdalene settled there. They left after a year and the land was bought by Russia Zionists who founded a farm, Ahuzat Moskva (Moscow Estate) in 1910. A few years later, the land was sold to private investors. An encampment of Gdud HaAvoda workers who built the Tiberias-Rosh Pina road was established there in 1921.
In September 2009, a salvage dig of the Israel Antiquities Authority prior to the construction of a hotel revealed an ancient synagogue believed to date back some 2000 years, from 50 BCE to 100 CE. In the middle of a 120 sq.m. main hall, archaeologists discovered an unusual stone carved with a seven-branched menorah. It is the first of its kind to be discovered from the early Roman period. In addition to the engraved stone, the walls are decorated with brightly-colored frescoes.