By the 16th Century, mineralization of the mine's tailings and slag added by smelters began to produce a red-coloured sludge rich in copper, limonite, silicic acid, and zinc.

When the sludge was heated for a few hours and then mixed with linseed oil and rye flour, it was found to form an excellent anti-weathering paint.

During the 17th century, falu red began to be daubed onto wooden buildings to mimic the red-brick façades built by the upper classes.

Falu red saw a resurgence in popularity in the Swedish countryside during the 19th century, when poorer farmers and crofters began to paint their houses.

As falu red ages the binder deteriorates, leaving the color granules loose, but restoration is easy since simply brushing the surface is sufficient before repainting.