Mulukuku was originally established for refugees of the Contra War. Following the war there was a period of rebuilding aided by the establishment of several cooperatives. Unfortunately, many of these efforts were undone by the devastation caused by Hurricane Joan in 1988. The Tuma River, which divides the town, flooded destroying the connecting bridge. The bridge has since been rebuilt.
Mulukuluâ€™s best known resident is the revered Dorothy Granada, an American nurse who founded a womenâ€™s health clinic in 1990. During the presidency of Arnoldo Aleman Granada was almost deported, allegedly for refusing to treat non-Sandinistas and for performing abortions.
Local and international outrage eventually led to the reopening of the clinic and Granadaâ€™s return to Mulukuku. The only highway that passes through Mulukuku is the one from Rio Blanco to Puerto Cabezas. It isnâ€™t paved and during the rainy season it isnâ€˜t usable at all.