Kfar Darom was founded on 250 dunams of land (about 25 hectares or 60 acres) purchased in 1930 by Tuvia Miller for a fruit orchard on the site of an ancient Jewish settlement of the same name mentioned in the Talmud.

A community was established on the land at the close of Yom Kippur on 5 and 6 October 1946,[1] by Hapoel HaMizrachi's kibbutz movement as part of the 11 points in the Negev settlement plan.

[2] Following Israel's victory in the Six-Day War in 1967, and its subsequent occupation of the Gaza Strip, a Nahal military outpost was established at the site in 1970.

[3] In 1989, this was converted to a civilian community by the Israeli national unity government of Shimon Peres (Alignment) and Yitzhak Shamir (Likud).

At the point of the disengagement plan in 2005, there were about sixty families, totaling about 330 people, who earned their living from the free working professions, agriculture, and a central packing center for the vegetables produced by the Gaza settler communities.