It was a small village of Danu people. The village grew into a town in the 1920s when the single-line railway line was extended from Aungban to Shwenyaung, and Heho was determined to be a convenient intermediate stop and transfer point. Later an airport was built, 4 km (2.5 mi) northwest of the town.
The airport served as an airbase both for the Allies and the Japanese during World War II. The airbase was heavily bombed by the Allies. Evidence of aircraft bunker revetments and bomb craters can still be seen on the southern end of the airfield, especially noticeable from the air.