It was founded in 1922 as an American-Jewish settlement, c.1 km south of the village of Tabsur, where an important World War I battle had taken place four years previously.

[1] While the majority of its residents are Israeli-born Jews, a large part of the population consists of Jewish immigrants from the Americas, Europe and South Africa.

[4] Before the 20th century, the location of Ra'anana formed part of the Forest of Sharon, a hallmark of the region's historical landscape.

It was an open woodland dominated by Mount Tabor Oak (Quercus ithaburensis), which extended from Kfar Yona in the north to Ra’anana in the south.

The intensification of settlement and agriculture in the coastal plain during the 19th century led to deforestation and subsequent environmental degradation known from Hebrew sources.

On April 2, 1922, two wagons left the corner of Lilienblum and Herzl Streets in Tel Aviv carrying four "Ahuza" members, three laborers and two armed watchmen.

[17][18] Though the majority of Ra'anana residents are secular, there is a sizeable religious community, mainly consisting of Modern Orthodox Jews, many of whom are immigrants from the US, UK, South Africa and France.

[19] Ra'anana has an industrial zone in the north of the city, which is home to Renanim shopping mall and many high-tech companies, including Emblaze, Hewlett-Packard, NICE Systems, SAP, NCR Corporation (formerly Retalix), Comverse, Red Hat, Waze (prior to Google acquisition), Texas Instruments, Arm Holdings and ZoomInfo.

Ahuza Street runs through the city from east to west and is lined with shops, restaurants and a cultural center.

Ra'anana has developed supplementary education programs for the afternoon and evening hours, which meet the needs of thousands of children, aged 5–18.

It offers walking and bike paths, sports fields, a zoo and children's petting corner and a lake in a clover shape reminiscent of Ra'anana's coat of arms.

[20] Ra'anana Park Amphitheatre has been the venue for musical acts such as A-ha, Backstreet Boys, Evanescence, Alice Cooper, Lauryn Hill, Tori Amos, Chick Corea, Ian Anderson, Ziggy Marley, The Cranberries, The Stranglers, Seal, Brian Wilson, Regina Spektor, Blondie and Pet Shop Boys.

Its current multi-floor building is situated in a large gardened area and accommodates 240 rehabilitative beds for short and long-term hospital care.

With a large population of American expatriates, the Ra'anana Express are an inaugural team in the Israel Baseball League.