The municipal area is situated in the valley of the Tagliamento River, separating the Julian Alps in the east from the Carnic Prealps in the west.
A stop on the ancient trade route leading from the Adriatic coast into the Eastern Alps already existed during the Celtic period about 500 BC.
In 1077 it became part of the newly established Patria del Friuli and the ruling Patriarchs of Aquileia exercised control over the important trade route into the Alps.
Duke Bolesław of Bytom of the Polish Piast dynasty suddenly died in Venzone during travel in 1354, and was buried in the cathedral.
Clearing-up operations started immediately and, by resolution of a citizens committee, the historic town centre was rebuilt in its original style from numerous pieces of rubble in the next years.