Borculo began as a settlement near where, at the time, the Berkel joined a smaller stream called the Grolse Slinge.

In the long conflict (known as the "Borculo question") between the heirs of the last count of Bronkhorst (deceased in 1553 without children) and the Prince-Bishop of Munster over ownership of Borculo, the Court of Gelderland ruled on 20 December 1615 in favour of count Joost of Limburg and Bronkhorst.

Prince-Bishop Christoph Bernhard von Galen tried twice to keep Borculo under Munster's authority, but without success.

The municipality of Borculo was established in 1795 from the former city, castle, and the "schependom" (district) of Dijcke or Dijkhoek.

Borculo became an independent municipality, including Geesteren, Gelselaar, Haarlo, and Leo-Stichting.

On August 10, 1925, Borculo was struck by a tornado with a diameter of one to two kilometers, causing significant destruction.

For a long time, Borculo had a harbor, serving as a hub for trade shipping on the Berkel River.