An Hapoel branch operated in Safed during the British Mandate, as early as 1932[1][2] After the establishment of Israel, the club was reorganized and a football section was founded in 1951 and at first played in regional leagues in the Upper Galilee, before joining Liga Gimel in 1954.

[3] They were promoted to the second tier for the first time, after they won Liga Bet North A division in the 1961–62 season.

In spite of their league placing, the club made a remarkable run in the 1967–68 Israel State Cup, after they eliminated top flight clubs, Hapoel Haifa, by a result of 2–1 after extra time, and Hapoel Be'er Sheva, by a result of 4–3 on penalties, after the match ended in 1–1 draw and reached the Quarter-finals, where they lost 0–1 to Hapoel Petah Tikva.

In the 1973–74 season, the club achieved their best placing to date, after they finished seventh in Liga Alef North division.

In the following season, the club finished bottom and relegated to Liga Bet, now as the fourth tier.