Belize was originally known as British Honduras, a colony formed in 1862 from settlements on the coast of Guatemala. British Honduras obtained a coat of arms on January 28, 1907, which formed the basis of the badge used on British ensigns. The coat of arms on the Belize flag recalls the logging industry that first led to British settlement there.

From 1968 onward an unofficial national flag was in use. It was blue, with a modified version of the arms ( minus the Union Jack) on a white disk in the center. The colors were those of the People's United Party (PUP). Around the arms was a wreath of 50 leaves which commemorates the year PUP came to prominence, 1950. On independence in 1981, the Belize flag was retained, but red was added to stand for the opposition party.