Adopted 4 March 1947 on 92F/12 as a new name as submitted in 1939 by a surveyor in the area (surveyor not cited). Named in association with the Matchlee Reserve, Matchlee Bay, and Matchlee Creek.

Source: BC place name cards & correspondence, and/or research by BC Chief Geographer & Geographical Names Office staff.

Named after the First nation reserve at the head of this bay near the mouth of the Burman River. The word is believed to be a variant of ‘muchalee,’ which is the original Nuu-chah-nulth name for the Gold River valley, according to author George Nicholson. The Muchalaht people, who belong to the Nuu-chah-nulth cultural group, are “those who live beside the Muchalee River.” Muchalaht Inlet is named for them. The Mowachaht (“people of the deer”), who occupied the more westerly portions of Nootka Sound, were traditional enemies of the Muchalaht, who lived farther east, and many battles were fought over the rich sockeye salmon resources of Gold River. The Muchalaht were reduced in number by the endless attacks and retreated inland but eventually intermarried with their enemies; today the two groups are allied and live at the same village site. Nicholson has suggested that the names of the tribes are both derived from the same linguistic source. Nearby Matchlee Creek and Matchlee Mountain are named after Matchlee Bay.

Source: Scott, Andrew; "The Encyclopedia of Raincoast Place Names"; Harbour Publishing, Madeira Park, 2009, page 366-367.