Montreal bagels, like the similarly shaped New York bagel, were brought to North America by Jewish immigrants from Eastern Europe; the difference in texture and taste reflect the style of the particular area in Eastern Europe in which the immigrant bakers learned their trade. Minor controversy surrounds the question of who first brought the bagel to Montreal. They were (reportedly) first baked in Montreal by Chaim (Hyman) Seligman as verified by Montreal historian Joe King. Seligman first worked in the neighbourhood community of Lachine and later moved his bakery to the lane next door to Schwartz's Delicatessen on Boulevard St. Laurent in central Montreal. Seligman would string his bagels into dozens and patrol Jewish Main purveying his wares, originally with a pushcart, then a horse and wagon and still later from a converted taxi.

Seligman went into partnership with Myer Lewkowicz and with Jack Shlafman but fell out with both of them. Seligman and Lewkowicz founded the St. Viateur Bagel Shop in 1957 and Shlafman established Fairmount Bagel in 1919, which both still exist in the present day. A substantial proportion of Montreal's English-speaking Jewish community gradually left for other locales. Catering to this population, Montreal-style bagel shops have opened in Vancouver, Ottawa, Toronto, Hamilton, Calgary, and other Canadian, and even US cities, such as Seattle, Houston, Los Angeles, and Portland, Oregon. However, this style of bagel has been, until know, almost completely unknown in the northeastern U.S. despite its proximity to Montreal.