[2][4] Located around the Oslofjord, Holmestrand developed as a timber/lumber port starting around 1550, when the Dutch came here for timber.

In 1716, the northern part of Holmestrand was reduced to ashes after a large fire spread through the area.

In 1838, the new formannskapsdistrikt law gave the small town self-governing municipality status.

In 1902, after the opening of the Holmestrand–Vittingfoss railway, Holmestrand became the shipping port for wood pulp from Hvittingfoss in what is now Kongsberg Municipality.

In 1967, the company became part of Årdal og Sunndal Verk (ÅSV), which was later acquired by Norsk Hydro in 1986.

It runs just to the west of the town of Holmestrand and secondary roads connect the city centre to this highway.