In 1854, the parish of Øksendal was separated from Sunndal Municipality to establish the new municipality of Øksendal. Initially, Øksendal had a population of 1,291. On 1 January 1899, the eastern district of Ålvundeid was separated from Øksendal to form a municipality of its own. This left Øksendal with 654 inhabitants. On 1 January 1960, both Øksendal and Ålvundeid were incorporated into Sunndal Municipality. Prior to the merger, Øksendal had a population of 497.