Although the region around the city has been populated since prehistoric times, Rheine was first mentioned in a document signed by Louis the Pious in 838.

On 20/21 September and 19 October 1647 glowing cannonballs set fire to the city and 365 houses were destroyed.

In 1803 the city became the capital of the Sovereign Principality of Rheina-Wolbeck (556 square kilometers) of the House of Looz-Corswarem, later annexed by the Grand Duchy of Berg and the Kingdom of Prussia.

In the Second World War, Allied forces bombarded the city repeatedly, especially the railway line and the Dortmund-Ems Canal, which represented tactical goals.

Large-scale bombing raids occurred on 5 October 1944 and 21 March 1945, each leaving more than 200 dead and causing extensive damage to the city area.

After 1945, Rheine was in the British occupation zone and 1946 was politically assigned to the newly founded Land (state) of North Rhine-Westphalia.

The most recent city council election was held on 13 September 2020, and the results were as follows: Rheine is the western terminus of the Münster-Rheine railway.