"Phae Muang Phi" has a history that intertwines geological facts with local legends. Geologically, this area was formed by the natural erosion (wind and water) of unconsolidated sediment and sandstone layers over 30,000 years, resulting in unique earth pillars and cliffs. Historically, the name is derived from local dialect: "Phae" means a grove or scrub forest, and "Muang Phi" (Ghost City) conveys the eerie silence and otherworldly atmosphere of the terrain. The area was officially designated as a Forest Park on March 4, 1981, to preserve this natural heritage.