Jaraczewo was granted town rights in 1519 by Polish King Sigismund I the Old.

Jaraczewo was a private town of Polish nobility, administratively located in the Pyzdry County in the Kalisz Voivodeship in the Greater Poland Province of the Kingdom of Poland.

Under German occupation during World War II it was renamed Obragrund to erase traces of Polish origin.

Jan Marian Parowicz, commander of the local unit of the Narodowa Organizacja Bojowa and Union of Armed Struggle organizations, was arrested by the Gestapo in 1942, and then sentenced to death and executed the following year.

[3] On February 9, 1945 American B-17G crashed near the town trying to make its way to Soviet controlled territory, after in air collision during bombing mission in Germany.