The locality was created in the course of the draining of the Donaumooses begun at 1790, in the year 1795 it became a colony of Karl Freiherr v. Eckart and was named after Charles Theodore, Elector of Bavaria.

The living conditions were in particular in the beginning, very hard, and improved in the course of the decades only little.

1824 were created a little later again a closed spinning mill, 1898 developed the moorland laboratory.

Today Karlshuld is a prosperous municipality, which won in the last years also as residence - not least due to the proximity to Ingolstadt - at attractiveness.

In the years 1970 to 1985 took place the incorporations of the municipality parts Grasheim, Kochheim, Nazibühl and Neuschwetzingen.