This street was created in 1889 as part of the Commercial Street Steam Motor Addition to the City of Seattle. It appears to have been named for Fidalgo Island in Skagit County, which is about 60 miles to the northwest, as S Orcas Street appears to honor Orcas Island and Padilla Place S, Padilla Bay. The island itself was named after Salvador Fidalgo y Lopegarcía, who explored the area for the Spanish in the early 1790s.

S Fidalgo Street begins at a shoreline street end on the Duwamish Waterway just west of Ohio Avenue S and goes 700 feet east to E Marginal Way S. It picks up again at 1st Avenue S and goes half a mile east, then southeast, to a dead end just east of Padilla Place S.

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