The circuit opened on 8 December 1985. In 1986, the venue hosted its first international motorcycle event in March and the Formula One Spanish Grand Prix in April. While the facility can accommodate up to 125,000 spectators, its relatively remote location hindered significant turnout during its early years.
Between 1986 and 1990, the circuit served as the home of the Formula One Spanish Grand Prix. However, the lack of significant spectator turnout due to the circuit's location resulted in Formula One moving the event to Barcelona following the 1990 race. During this period, the track also hosted the FIM Endurance World Championship (1986–1987) and the World Sportscar Championship (1986–1988). The era was also marked by the death of Spanish motorcycle racer Javier Moreno, who crashed at the circuit in 1990.
The circuit layout has been modified to improve safety and flow, with several corners renamed to honor racing champions:
Curva Sito Pons: In 1992, the track eliminated four corners to create this long right-hander.
Senna curve: This chicane was created for the 1994 European Grand Prix. It was installed at the specific corner where Martin Donnelly suffered a career-ending accident during qualifying for the 1990 Spanish Grand Prix.
Dani Pedrosa corner: Formerly known as Curva Dry Sac, this sixth corner was renamed on 3 May 2019 to honor the retired three-time world champion.
Jorge Lorenzo corner: On 2 May 2013, the final corner was renamed after the then four-time and reigning world champion.
The track was resurfaced in 2005. Originally known as Circuito de Velocidad Jerez, it was renamed on 3 May 2018 to honor motorcyclist Ángel Nieto, who died in 2017.
The most notable accident in the circuit's history occurred during the 1990 Spanish Grand Prix qualifying session, involving Martin Donnelly. The crash was career-ending and led directly to the installation of the Senna chicane years later.
The circuit has seen several fatalities during motorcycle events. In addition to Javier Moreno (1990), Japanese racer Nobuyuki Wakai died following a crash in 1993. More recently, the track saw the deaths of Marcos Garrido in 2019, Ismael Bonilla in 2020, and 15-year-old Dean Berta Viñales in 2021.
Jerez has hosted a wide variety of international racing series, including the BPR Global GT Series (1995), FIA Formula 2 (2017), GP3 Series (2017), and the World Series Formula V8 3.5.
The circuit is also a major venue for testing. It was used for Formula One winter testing until 2015 and remains a primary site for MotoGP and Superbike World Championship testing. The site's hot-summer Mediterranean climate provides favorable winter temperatures that mimic racing conditions found later in the year in northern Europe.
Jerez hosted the 1997 European Grand Prix, a championship decider involving a collision between Michael Schumacher and Jacques Villeneuve. However, the event also marked the end of the circuit's Grand Prix history. During the podium celebrations, Jerez's Mayor Pedro Pacheco disrupted the proceedings by presenting a trophy that was intended to be presented by a dignitary from Daimler-Benz. This incident resulted in the track being banned from hosting a Grand Prix ever again.
The outright track record of 1:15.651 was set by Pedro de la Rosa in a McLaren MP4-20 during Formula One testing in April 2005. The circuit continues to host the Spanish motorcycle Grand Prix, which is currently held in early May to reduce the risk of rainfall and ensure warmer temperatures than the previous April dates.
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