According to local folklore, Raub was first explored and established around the 18th century. Oral accounts recount that two young men, accompanied by their father, journeyed through dense rainforest and navigated along a river. After traveling for a long time, they eventually arrived at a tebat or embankment—an area where the river's flow was naturally blocked or dammed.

Upon arriving at the spot, the father suggested they stop to rest, as the area seemed exceptionally suitable. The sand on both sides of the embankment appeared remarkably clean. Both young men agreed with their father's suggestion. They began clearing the surrounding area and built a hut as their shelter. The initial embankment site of their settlement is believed to be located at what is known today as Padang Besar Majlis Daerah Raub.

Every day, the trio ventured into the jungle to gather forest produce such as rattan, resin, rubber, and jelutong. One day, while picking lush edible shoots near the banks of the embankment, their attention was suddenly caught by a shimmering glint amidst the sand.

Curiosity prompted them to immediately scoop up (meraup) handfuls of sand from the riverbank. To their astonishment, they discovered that the sparkling grains were pure gold. Every time the sand was scooped, gold was obtained with remarkable ease. Because gold was so abundant and could be gathered simply by scooping it with their bare hands, they decided to name the location "RAUB".

Regarding its etymology, a slight variation in spelling exists: the action meraup originates from the root word "RAUP", whereas the official modern spelling of the district is "RAUB". The shift from the letter 'P' to 'B' is believed to be influenced by the local Pahang dialect, which softens hard final consonants, thereby making the spelling "RAUB" more natural and appropriate for the local community up to this day.