The street name refers to Pilegården, a farm which was located at the site in the Middle Ages.

[2] In the 16th century, Copenhagen's stud farm (Københavns Avlsgård), where the city's bulls were stabled, was also located along the street.

[2] The northernmost part of Pilestræde was originally called Springergade with a reference to the bulls at the farm.

Local residents found the name inappropriate and the street was therefore included in Pilestræde in 1881.

[2] In 1765, Berlingske's publishinghouse established in one of the yards on the east side of the street.