Bridal Veil evolved as a company mill town in the 1880s when one of Oregon's first paper mills was established on Bridal Veil Creek. A small community developed around the papermaking mill for the families of the workers. It was followed by the Bridal Veil Falls Lumbering Company that consisted of a logging operation and saw-mill on Larch Mountain, and a planing mill at Bridal Veil.

In 1886, the Company started construction of the mill buildings and residential dwellings east of the paper mill. A saw-mill and logging town, later known as Palmer, was built one and one-half miles south of Bridal Veil on Larch Mountain. It was located up Bridal Veil Canyon, on Bridal Veil Creek and was connected to Bridal Veil by Palmer Mill Road and a two-mile, wooden, v-shaped flume. Timber was rough-cut and then flumed down the mountain to the planing mill at Bridal Veil.

The Bridal Veil and Palmer communities and mills worked in tandem, dependent upon each other, for nearly fifty years until fire destroyed some of the planing mill buildings at Bridal Veil in 1936. As the timber supply on the mountain was nearly depleted, and the country was in The Depression, a decision not to rebuild those buildings was made.

In 1937, the mill buildings and town were sold to "Wood Specialties Company", later named "Bridal Veil Lumber and Box Company". This company produced wooden cheese boxes for the Kraft Food Company. Ammunition boxes for the Army and Navy were manufactured during the war years. In 1950, the Company decided to diversify and began producing molding, doorjambs and window frames.

By 1960 the Company had ceased operations. Bridal Veil's nearly 75-year history as a company mill town came to an end.