The area first saw Chinese settlers open up "kangchu" plantations in Kangkar Sungai Tiram.

In the early 20th century, numerous rubber estates were established by British and Chinese planters and led to the influx of more Chinese and Indian immigrants. In the early days of Malaysian independence, FELDA land development schemes in the area allowed more Malays to enjoy the benefits of palm oil and rubber agriculture. Since the 1990s, the urban expansion of Johor Bahru has ended Ulu Tiram's relative isolation and it is now one of the fastest growing suburbs of the city as part of the Tebrau growth corridor. The town hosts a taxi depot which ferries people around Johor as well as to Johor Bahru. The taxi depot hosts a small shopping complex. The town is of little interest; markets and shophouses selling various provisions and accessories constitutes much of the town. The town also hosts a small housing and industrial estate.

Sejarah Pekan ulu Tiram bermula dengan penemuan oleh penduduk berbangsa cina yang mula membuka ladang kangchu di Kangkar Sungai Tiram. Pada permulaan abad ke 20, kebanyakan ladang getah dibuka oleh British dan peladang cina seterusnya menarik masuk lebih ramai imigran cina dan india. Pada awal kemerdekaan Rancangan Pembangunan Tanah Persekutuan (FELDA) diperkenalkan dan membolehkan kaum melayu bersama-sama mendapat manfaat daripada pertanian getah dan kelapa sawit. Felda mula dibuka di kawasan ulu tiram iaitu Felda Ulu Tebrau. Semenjak tahun 1990, pembangunan bandaraya Johor Bahru telah mula menular ke kawasan Ulu Tiram dan seterusnya menjadikan pekan Ulu Tiram antara pekan yang mula pesat berkembang. Kini Pekan Ulu Tiram telah mempunyai pusat membeli belahnya sendiri dan seterusnya sebagai tumpuan pelancong dari kawasan berhampiran.