Cacao Lane, located in the heart of Ellicott City, sits on three lots, originally purchased through a land lottery in 1834. The three buildings housing the restaurant are constructed of locally quarried stone and brick. Parts of these buildings are over 165 years old.

Many different businesses have had their home here over the years. Early owners included Elizabeth Hunt who operated a millinery shop in one section and Thomas Hunt who sold groceries and dry goods in another. The newest addition to Cacao Lane, the dining area to the left of the bar entrance, is part of a building once owned by the Ellicott City Postmaster. He operated a general store here in 1886. Other uses have included a bar, pool hall, and cab stand.

Flooding Hurricane Agnes filled the first floors of the building with mud and debris. After the water receded, work was begun on Cacao Lane, which opened in 1974.