The team was formed on 15 August 1923 as the Rákóczi Sport Club by workers of the local Mezőgazdasági Ipari Részvénytársaság sugar factory.

At this time some good young talent joined from the team's youth organization, including Bőzsöny, Savanyó, and Hegedűs the goalkeeper, and in 1973 Imre Mathesz took the helm as head coach.

The team would add more key players and would finish 3 points behind Szeged for second place and the right to enter NB I.

The team's first NB I. match was played against Vasas SC before 22,000 fans at Rákóczi Stadion.

Besides the first NB I. match between two teams from Somogy county (a 1–3 loss against Siófok FC) the year was mostly forgettable as Rákóczi finished in last place.

László Prukner became the head coach in the summer of 2003, but the team lost several key players in the same year.

And they could not start in the NB III due to license problems, therefore the MLSZ relegated them to the Somogy county first division.

In the 8th round of the 2018–19 Magyar Kupa season Kaposvár eliminated title holders Újpest FC.

Since their formation, Kaposvári Rákóczi FC has participated in 8 seasons at Hungary's highest professional level.

Note: Flags indicate national team as defined under FIFA eligibility rules; some limited exceptions apply.