The village got its first buildings in 1670, when Måns Mårtensson Karesuando, called "Hyvä Maunu Martinpoika" in Finnish and "Good Maunu, Son of Martti" in English, bought land from Sami Henrik Nilsson Nikkas.
In October 2005, a helium balloon launched at a school fete on 24 September 2005, was found by 53 year old Isak Toyra in Karesuando, Sweden who sent it back to the school, and claimed a £10 prize.
Karesuando/Karesuvanto is the northernmost point on the major European route E45 to Gela in Italy and a stop on the European route E8 from Tromsø to Turku.