[7] It was founded in 1698 and named after Stepan Rasskazov, a native of Morshansk and the first settler in the area.

[citation needed] In the 18th–early 20th century, Rasskazovo was known for its cottage industries, such as stocking knitting, skin dressing, candle and soap production.

In 1753, a cloth factory was built and later a dyeing manufactory.

[citation needed] Within the framework of administrative divisions, Rasskazovo serves as the administrative center of Rasskazovsky District, even though it is not a part of it.

[1] As an administrative division, it is incorporated separately as the town of oblast significance of Rasskazovo—an administrative unit with the status equal to that of the districts.