The settlement was first mentioned in 1373 as the village of Bushta.[3] In 1910, the settlement belonged to the Máramaros County of the Kingdom of Hungary. At the time the settlement was known as Bustyaháza, a Hungarian variant of the name, and contained a total of 2,056 inhabitants, the majority of which were Ruthenians.
In 1930, the settlement's Jewish population was 1,042.[5] In 1957, Bushtyna was granted the status of an urban-type settlement.[2] In 1995, the settlement was renamed from Bushtyna (Ukrainian: Буштина) to the current "Bushtyno."[6] On 26 January 2024, a new law entered into force which abolished the status of an urban-type settlement, and Bushtyno became a rural settlement.[7]