Umm El-Fahim was founded sometime before 1265 (the exact date is unknown).

The city sits on the Umm El-Fahim mountain ridge, the highest point of which is Mt. Iskander (522 metres above sea level), and watches over the Wadi Ara, through which passes the Hadera - Afula highway.

Umm El-Fahim (meaning Mother of the Charcoals in Arabic) has already been mentioned in 1265 by the Muslim historian El-Makrizi. The village was surrounded by natural forests which provided its main source of income - coal. Several archeological sites around the city date to the Muslim, Roman and Hellenistic periods and the Iron Age. In 1948 there were 4500 inhabitants, mostly farmers, in Umm El-Fahim area. Since the establishment of Israel, the population has grown constantly. In 1960 Umm El-Fahim was given the status of a local council. Between 1965 and 1985 the town was governed by appointed councils. In 1985 Umm el-Fahem was granted the formal status of a city.

The city is now the commercial centre for many of the surrounding villages. Following the establishment of Israel, Umm El-Fahim has transformed itself from a rural village to an urban settlement. Most breadwinners make their living in the building sector. The remainder work mostly in clerical or self-employed jobs, though a few small factories have been built over the years.

The city has about 40,000 inhabitants,almost all Muslim,and serves as the social, cultural and economic center for a large proportion of the residents of the Galilee"Triangle". The population is religious and conservative, with a consequent high birthrate.Over 50% are under age 18.