The club was founded in 1924 by the young Serbs Milan Petrović, Boža Popović, Danilo "Dača" Anastasijević, Petar Daničić, Dragutin Volić, and Svetislav Bošnjaković, the first secretary and goalkeeper.

This was a huge moment for the club, having finally left the small regional leagues for European quality football, now playing against teams from all over Yugoslavia.

Serbia and Montenegro remained united under the new Federal Republic of Yugoslavia and Obilić was placed for the 1992–93 season in the newly created Second National League.

Previously, Obilić reached the 1994–95 Yugoslav Cup final, eventually losing to Red Star Belgrade.

In June 1996, the career criminal and paramilitary leader Željko Ražnatović, known by his nom de guerre Arkan, took over Obilić and swiftly brought "victories."

With him in charge, Obilić started a rise to the top of Yugoslav football, which cross-town powerhouses Red Star and Partizan had always monopolized.

In the same season, Obilić also made it to the 1997–98 Yugoslav Cup final, but lost to Partizan and barely missed the double.

In the first leg in Munich, Bayern won 4–0 and the return match ended 1–1, resulting in Obilić being eliminated by the eventual runners-up of the 1998–99 Champions League.

According to journalist Franklin Foer, How Football Explains the World: An Unlikely Theory of Globalization, Ražnatović threatened players on opposing teams if they scored against Obilić.

One player told the British football magazine FourFourTwo that he was locked in a garage when his team played Obilić.

Over the summer 1998, UEFA considered prohibiting the club from European participation of the criminal connections of Obilić's president, Arkan.

[citation needed] As a result, Arkan stepped down as president in favor of his wife Svetalana "Ceca" Ražnatović, in July 1998.

After just one year in the second division, Obilić has again been relegated to the Serbian League Belgrade in the 2006–07 season, ending its 15-year run at the national level.

For the 2011–12 season, Obilić finished last yet again, and were again relegated, this time to the Belgrade Third League—7 divisions below Serbia's elite football league.

[5] The club still exists on paper and occasionally collects funds from renting out its stadium but the Obilić female team is the only one left in any official competitions.