[3] The name comes from the Saint Olaf Church [lv] (Swedish: Sankt Olai kyrka), built by the Olainīte [lv] stream, a Misa river tributary, under Swedish rule in the 17th century, at a place which is within the village now known as Jaunolaine [lv] ("New Olaine") some two kilometers away from the modern Olaine.

After 1868, a railway stop "Olai" (now the Jaunolaine Station) was built here on the Riga-Mitau line.

After Latvian independence, in 1919 "Olai" was renamed to "Olaine", in line with the Latvianisation of place names all over Latvia.

The history of modern Olaine is associated with the works at nearby peat bogs, taken into use on an industrial scale in 1939.

[4][5] Olaine is home of Olpha, the second largest pharmaceutical company in Latvia.