The name Beaulieu derives etymologically from Frenchbeau lieu, which means "beautiful place". It is derived from Beaulieu Abbey which was populated by 30 monks sent from the abbey of Cîteaux in France, the mother house of the Roman CatholicCistercian order. The Medieval Latin name of the monastery was Bellus Locus Regis or monasterium Belli loci Regis. During the Second World War, the Beaulieu Estate of Lord Montagu in the New Forest area was the site of group B finishing schools for agents operated by the Special Operations Executive between 1941 and 1945. In 2005, a special exhibition was installed at the Beaulieu Estate, with a video showing photographs from that era as well as voice recordings of former SOE trainers and agents. The village has remained largely unspoilt by progress, and is a favourite tourist stop for visitors to the New Forest, and also for birders seeking local specialities like Dartford warbler, European honey buzzard and hobby. Palace House was featured in the 2005 comedy-drama filmMrs. Palfrey at the Claremont starring Joan Plowright and Rupert Friend.
, which overlooks the village from across Beaulieu River, began in 1204 as the gatehouse to Beaulieu Abbey, and has been the ancestral home of a branch of the Montagu family since 1538, when it was bought from the Crown following the Dissolution of the Monasteries by Henry VIII. The house was extended in the 16th century, and again in the 19th century, and is today a fine example of a Gothiccountry house. Although still home to the current Lord and Lady Montagu, parts of the house and gardens are open daily to the public. It is a member of the Treasure Houses of England consortium.
In the late 1950s Beaulieu was the surprising location for one of Britain's first experiments in pop festival culture, with the annual Beaulieu Jazz Festival, which quickly expanded to become a significant event in the burgeoning jazz and youth pop music scene of the period. Camping overnight, a rural invasion, eccentric dress, wild music and sometimes wilder behaviour — these now familiar features of pop festivals happened at Beaulieu each summer, culminating in the so-called 'Battle of Beaulieu' at the 1960 festival, when rival gangs of modern and traditional jazz fans indulged in a spot of what sociologists went on to call 'subcultural contestation'.