There are traces of human life from Bronze Age in this area, as well as traces from the time of Roman Empire. Ancient Roman settlement Ad Drinum existed somewhere at this location. In the Middle Ages, Mali Zvornik was one of the main mining centres of the Serbian state. On Orlovine Hill near Mali Zvornik there are remains of the large Medieval fortress that was probably built in the first half of the 15th century, in the time of the Serbian Despotate. During the Ottoman rule, this area was part of the Pashaluk of Bosnia. Until 1878 it was the only Bosnian municipality on the right side of river Drina, when it eventually became part of the independent Kingdom of Serbia. In the end of 19th and beginning of the 20th century, population of Mali Zvornik numbered 115 houses. The municipality of Mali Zvornik was officially established in 1955.