The team was called Omagh Celtic Football Club and started off with maroon shirts with blue shorts.
The club were elected to senior football (the Irish League) for the first time in the 1990–91 season, and would remain in the top flight for the next five years.
In 1994–95, a change in makeup of the league, dropping the number of teams in the top flight to 8, caused Omagh to be relegated after finishing 9th.
After losing in the 1997–98 Irish cup semi-final with one of the best squads assembled, money worries forced the departure of the bulk of that side.
However, a tremendous 1999–2000 campaign in the first division saw Omagh under Roy McCreadie promoted as champions, Eamon Kavanagh collecting the cup at St Julian's Road despite a loss to Limavady.
Frankie Wilson and Eamon Kavanagh were caretaker managers for a time but rather than give them the job, Former Derry City star Johnny Speak took over.
He failed to settle in the role and although guiding Town to another Irish cup semi-final (another loss) he was replaced by Paul Kee and John Cunningham.
Since the 2000–01 season Omagh Town had been in the Premier Division, but continued to suffer from a lack of support and poor attendances.