Initially, only seasonal employees worked in the plant, but by the 1930s, barracks were built for permanent workers to live.

During World War II, the Krasna Hora factory was occupied by Nazi Germany between October 1941 and September 1943.

Actual houses began to be built in the area in 1949, and it received official rural settlement status in 1964 under the name Krasna Hora.

[3] On 30 October 2014, the Cabinet of Ministers of Ukraine placed Krasna Hora on a list of settlements within the Anti-Terrorist Operation Zone, a term used to identify Ukrainian territory occupied by Russian forces and their proxies during the war in Donbas.

[6] Krasna Hora came under direct assault amid the battles for Soledar and Bakhmut.