The Thompson House was built in 1874 by Captain Alexander Thompson, who fished for a living under sail. The area was a port of call for the steamers that plied the coast with passengers and freight. "Folks from away" would come to New Harbor in the summer to escape the heat of the cities like Boston, New York, and Hartford to enjoy the hospitality of the numerous guest houses that emerged from the steamboat commerce.

Dan Thompson's mother Jessie started the inn and restaurant in the main house in 1920. Dan's father, Guy Haley Thompson, was a lobsterman and a renowned artist. His paintings of seascapes decorate the walls of each cottage.

Dan began building the cottages to accompany the inn in 1949. He built 21 cottages in total with the help of friends and his sons.

Today the Thompson House (and cottages) provides the same high standards of accommodation as it did in the days of the coastal steamers 100 years ago.