The settlement dates back to at least the time of the Norman conquest and is mentioned in Domesday Book under the name Merchenefeld.

Ulf is shown as the lord of Markfield, Groby Blaby and Ratby in the hundred of Guthlaxton in Leicestershire in 1066.

[4] By 1086, the value had increased fivefold to £0.50 and the lord was Hugh of Grandmesnil who was also associated with the hundreds of Goscote, Guthlaxton and Gartree in Leicestershire.

[4] Markfield has close links with the Methodist movement and according to a blue plaque on the church, its founder John Wesley paid 13 visits.

There are a variety of public footpaths radiating out from the village – including the "Leicestershire Round", which passes along Main Street.

[citation needed] In 2009, a private contractor filed for permission to build a new housing estate by London Road.

A petition to prevent such housing being built took place, arguing that the local primary school, public transport and other services could not cope with the large influx of new residents.

Markfield rests on Precambrian volcanic and sedimentary rocks, and the rare mineral diorite is sometimes called markfieldite because it is found in the village.