The street has had a number of names. It was known as Dewy's Lane in the 13th century, after a family who lived there. Its name was Somenor's Lane in 1385. For a time the street was known by the name of Lawrence Hall, which was on the south side of the street, 30–40 yards from Turl Street.The name of "Ship Street" was used from about 1762, after an alehouse in the street. At one time, there was a sheep market in the street and its name is a possible corruption of this. The street used to be much longer than it is today, running east through Catte Street to the city wall at Eastgate.
St Anne's College, when it was still known as the Society for Home Students, had its first common room in Ship Street.The annual magazine for former members of the college is entitled The Ship.
There are still many 16th to early 18th century houses in the street that are Grade II listed buildings