The town was founded in 1195, when Prince-Bishop Rudolf I of Verden built a castle in the area.

In 1648 the Prince-Bishopric was transformed into the Principality of Verden, which was first ruled in personal union by the Swedish Crown, interrupted by Danish occupation from 1712 to 1715.

This rebuilding work required the western part of the town to be demolished, making it necessary to move the main area of settlement to the east.

In the wake of the Treaty of Saint Germain in 1679 Rotenburg was returned to Sweden.

The Kingdom of Hanover incorporated the principality in a real union; the princely territory, including Rotenburg upon Wümme, became part of the new Stade Region, established in 1823.

In 2006, during the World Cup, Rotenburg hosted the national team from Trinidad and Tobago.