The earliest documented references to Gračanica date back to 1528 in Ottoman archives, where it was identified for its iron mine.

Approximately 4 km (2.5 mi) from the town, a medieval fortress named Sokol existed.

During the 17th century, it underwent expansion facilitated by Ahmed-paša Budimlija, who constructed the White Mosque, a public bath, and a clock tower.

Under the Austrian Empire, Gračanica witnessed substantial economic, urban, and cultural advancements.

Gračanica is twinned with:[1] Una-Sana  Central Bosnia Posavina  Herzegovina-Neretva Tuzla  West Herzegovina Zenica-Doboj  Sarajevo Bosnian Podrinje Canton 10