The club met with immediate success, winning the Welsh National League Division One championship in 1926–27, ahead of Bangor City and Rhyl, and repeating the feat in 1929–30 having been pipped to the title by Connah's Quay & Shotton 12 months earlier.
The club went on to win the Combination Cup in 1981 (beating Bacup Borough in the two-legged final) and then the league championship in 1981–82, heading off the challenge of Colne Dynamoes by two points.
[citation needed] The following season, Caernarfon moved into the newly created North West Counties League and achieved promotion, along with Radcliffe Borough, at the first attempt.
Despite a poor start, new manager John King turned playing affairs round and the club enjoyed its most successful FA Cup run in 1986–87.
[citation needed] A revival in the latter half of the 1987–88 campaign lifted Caernarfon up to third place and they also reached the semi-final of the Welsh Cup before losing out (on a 2–1 aggregate) to Cardiff City.
In 1989–90, Caernarfon were relegated to the NPL's first division and, following a series of mediocre performances over a five-year period, the club's board of directors decided to return to Welsh football.
That led to an even more successful 1996–97 season when the Canaries challenged Barry Town for the league title before finishing fourth, just behind Ebbw Vale on goal difference and missing out on a place in Europe.
Eifion Williams, the club's leading goalscorer, twice won international recognition for Wales at under-21 level and earned Caernarfon a reported £25,000 when transferred to champions Barry Town in 1997.
[citation needed] Manager Adrian Jones guided the team through this deserved success, and off the field a new stand and changing facilities were finally completed early in 2001.
Former Wrexham midfielder Wayne Phillips took the job in a caretaker role and continued on a permanent player/manager basis in 2004–05, but results did not really improve over his two seasons in charge and he stepped down in June 2007, to be replaced by former Oswestry Town and Cefn Druids manager Steve O'Shaughnessy.
Steve O'Shaughnessey left Town at the end season 2007–08 to take over the hot seat at Connah's Quay Nomads and was replaced by David Rowe.
Following a poor run of results and with the club on the bottom of the Welsh Alliance League (Division 1), Clive Jones left the managerial post by mutual consent.
Steve Smith was appointed manager in November 2010 with the task of keeping the Club in the Welsh Alliance Division 1 and developing a squad that could challenge for honours the following season.
After such a good run Caernarfon were fancied to win the league in 2011–12 but dropped points against teams in the lower half of the table consigned them to an eventual 4th spot.
On 13 April 2013, Caernarfon Town made their way to Latham Park, Newtown, to face Kilvey Fords FC of Swansea in the 2012–13 FAW Trophy Final.
On 24 September 2022 Caernarfon Town and The New Saints were invited to play in the Scottish SPFL Trust Cup, they would be drawn away to Clyde FC but were beaten 1–0 at New Douglas Park.