The club was founded in 1965 and played mostly in the lower divisions of Israeli football.

[1] Hapoel Arad finished their debut season in Liga Alef South division in the sixth place.

However, they were relegated back to Liga Bet, after bottom finish in the following season.

The club finished runners-up in Liga Bet South B division in the following season and made an immediate return to Liga Alef, through the Promotion play-offs, after they defeated Hapoel Tzafririm Holon in the decisive match, by a result of 4–1.

[3] In the 2014–15 season of Liga Bet South B division, the club withdrew after playing 14 matches,[4] due to major financial problems.