[5] Local tradition, supported by archaeology, have that modern day ad-Dhahiriya was founded by the Mamluk sultan Baybars (r. 1260–1277), whose regnal title was 'al-Zahir' (also transliterated 'al-Dhahir').

[7] In the Ottoman tax records of the 16th century, the village, listed under the name 'Darusiyya', was part of the nahiya (subdistrict) of Halil (Hebron).

[9][10] Robinson further remarked: "A castle or fortress apparently once stood here; the remains of a square tower are still to be seen, now used as a dwelling; and the door-ways of many hovels are of hewn stone with arches.

"[11][12] In 1856, a Scottish clergyman, Horatius Bonar described the village and its ruined castle: "Suddenly, at an abrupt elbow of the ravine, we are relieved by seeing the old castle, perched on its rocky height well in the setting sun; the poor village, which seems to hang about it, with its square yellow huts, rather helps, at this distance, to improve its appearance, and to give dignity to its towers and broken ramparts.

From this point it looks much bolder and substantial than it is; not so isolated as El-Aujeh, which we passed some days ago, but well-set upon yon craggy perch.

Like most of its fellow castles in the east and border "peels" in the north, it has seen better days, and has at one time, been a noble stronghold for Romans, or Crusaders, or Turks..."[13] In 1863 the French traveler Victor Guérin visited the place, and found that many of the men had fled, mostly further south in tents, in order to avoid conscription.

[28] According to the Office for the Coordination of Humanitarian Affairs (OCHA), the entrance to the village was closed by an IDF earth mound on 14 April 2005, forcing all Palestinians in the area to travel via Dura.

[25] Ad-Dhahiriya's location has made it a commercial center for more than 100,000 residents of the Negev Desert, in addition to being a central gathering point for workers who work in the city of Beersheba, both within the Green Line, from the surrounding southern West Bank areas.

According to the records of the municipality, over 1,040 commercial licenses have been issued to professionals and organizations provide a wide range of goods and services, including a comprehensive market to meet the needs of citizens.

Ad-Dhahiriya's workforce is composed of 68.6% of its population, of which 52% work within the borders of the Green Line, 17% in official government capacities, 15% in agriculture, 11% in trade and 5% in the manufacturing industry.

Today it has become a center named after Fawzi Pasha, a former leader of the Ottoman Army who constructed a fort with buildings characterized by their distinct architecture of bows and stripes.

In addition to the old town, a number of archaeological sites exist in the villages and hamlets surrounding Ad-Dhahiriya dating back to various historical periods.

Dhahiriya is home to the tomb site of ash-Sheikh Ahmad al-Ghumari, a 14th-century Sufi saint renowned for his knowledge of Islamic traditions and authorship of several books.

The municipality had erected Abu Kharrouba park in the southwest part of the city, on an area exceeding 20 dunams, which was a landfill site in the past.