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The headquarters of the district is located on the island of Car Nicobar . The district was created on August 1 , 1974 , when it was separated off from Andaman District .

The district is designated as an Integrated Tribal District, and is home to significant numbers of Indigenous Peoples (namely, the Nicobarese and the Shompen , classified as Scheduled Tribes according to the Constitution Of India ), who form the majority of the district's population. Because of its status as a tribal area, travel to the district is restricted to Indian nationals, and special permit restrictions apply.

The total population of Nicobar district as per 2001 Census Of India figures was 42,068. The district was severely affected by the Tsunami that was caused by the 2004 Indian Ocean Earthquake , which led to many deaths and damaged infrastructure.