Established in 1964 as a development town, Karmiel is located in the Beit HaKerem Valley which divides upper and lower Galilee.

This area, near the main road between Acre and Safed, had been an important marble[dubious – discuss] quarrying site.

[2] According to the Haredi newspaper She'arim, about 10 square kilometres (3.9 sq mi) (394 lots) were confiscated by a court order on 4 March 1963, at the request of the Israel Development Authority[clarification needed].

[3][clarification needed] In 1964, when local Arabs applied for permission to move into the town, Minister of Housing Yosef Almogi replied that "Karmiel was not built to solve the problems for the people in the surrounding area.

[8] In 1972, Karmiel was granted development town status, which bolstered its growth due to government-provided economic incentives to attract young couples.

The first mayor was Baruch Venger, followed by Adi Eldar, who has remained in this position until Moshe Kuninsky took his place in 2018.

During the Second Lebanon War in 2006, Hezbollah fired 180 Katyusha rockets into Karmiel and the neighboring villages, leading to casualties and damage to buildings, roads, and cars.

As of 2016[update], work is underway to create a further neighborhood on Mount Karmi on Karmiel's western fringe.

Rabbi Eli Talberg is the director of Natzotz-Machanyim, which is located on the first floor of "Kikar Ha'Ir" (often called "The Old Mall").

In November 2020, Krayot Magistrate's Court dismissed a lawsuit brought by Attorney Nizar Bakri on behalf of his two Arab Israeli nephews, alleging their right to education in Karmiel had been infringed by the municipality's failure to provide transport to and from Arabic-language schools outside the town.

In his ruling the judge said that Karmiel was a Jewish city and Arabic-language schools could change its demographic balance and character.

[20] Karmiel used to host a yearly beer festival event,[21] which included music and food, and was usually held in October.

The clinic is under the medical management of Dr. Walid Assadi and is open seven days a week, including Sabbath and holidays.

Karmiel has enacted by-laws to protect the environment and prevent pollution, and become a center for clean industries and advanced technology enterprises that abide by these standards.

An amphitheater on the grounds of the park hosts local events and incorporates a drainage system that collects rainfall which is later used for watering greenery.