The circuit was established by Fred Craner, a former motorcycle racer and Derby garage owner who served as secretary of the Derby and District Motor Club. Craner approached John Gillies Shields, owner of the Donington Hall estate, to use the roads on his land for racing. The original layout was 3.518 km long, built on normal-width unsealed estate roads.
The first motorcycle race took place on Whit Monday, 25 May 1931. For 1933, Craner obtained permission to build a permanent sealed track at a cost of £12,000. The first car race was held on 25 March 1933, followed by three further car meetings that year. The first Donington Park Trophy, a 20-lap invitation race held on 7 October 1933, was won by Earl Howe in a Bugatti Type 51.
In 1935 the circuit was extended to 4.107 km and the first 300-mile Donington Grand Prix was held, won by Richard Shuttleworth in an Alfa Romeo P3. From 1937 the layout was extended again to 5.029 km. The 1937 Donington Grand Prix was won by Bernd Rosemeyer in an Auto Union; the 1938 Donington Grand Prix was won by Tazio Nuvolari, also in an Auto Union. These races attracted the dominant German Silver Arrows teams of the era and drew large crowds.
The circuit closed in 1940 when the Ministry of Defence requisitioned it for use as a military vehicle storage depot. It was not returned to racing use and fell into disrepair.
In 1971 the park was purchased by Tom Wheatcroft, a local construction entrepreneur and car collector. He funded the rebuilding of the track and opened the Donington Grand Prix Exhibition museum in 1973, which held the largest collection of Grand Prix cars in the world until its closure in 2018. Wheatcroft battled Leicestershire County Council for planning consent for racing before successfully appealing and laying out the track by early 1976.
The first postwar motorcycle meeting was held on 15 May 1977, organised by The Pathfinders and Derby Motor Club. The circuit reopened for cars on 28 May 1977. The Melbourne Loop was added in 1985, increasing the Grand Prix lap distance to 4.020 km and enabling the venue to host Grand Prix motorcycle racing.
Donington Park hosted the 1993 European Grand Prix on 11 April 1993, the circuit's only Formula One World Championship race. Held in wet conditions, the race was dominated by Ayrton Senna, who advanced from fifth to first on the opening lap and won by over one minute from Damon Hill. The performance was subsequently described as the "Drive of the Decade" by AtlasF1. A memorial to Senna stands in the grounds of the racetrack.
In July 2008 it was announced that Donington Ventures Leisure Ltd had secured a 17-year deal to host the British Grand Prix from 2010, with plans for a redesigned circuit by Hermann Tilke. The project collapsed as fundraising attempts failed during the 2008 financial crisis. DVLL went into administration on 18 November 2009 with debts of nearly £4 million and a £14 million secured loan. Silverstone was awarded a 17-year British Grand Prix contract in December 2009. The circuit reverted to the Wheatcroft family at the end of 2009.
MotorSport Vision, led by Jonathan Palmer, took over the circuit business in January 2017 on a 21-year lease until 2038. MSV invested in extensive venue improvements including a full paddock resurface, the Garage 39 Restaurant, and a new grandstand at Hollywood corner. In April 2021, MSV purchased the freehold of the Donington Hall Estate.
The circuit is a regular venue for the British Touring Car Championship, the Superbike World Championship, British Superbikes, and British GT. In the BTCC's Super Touring era, Matt Neal caused a sensation in 1999 by winning at Donington in a Nissan Primera — the first independent driver to win in the modern era, earning a £250,000 prize from series promoter Alan Gow.
The DTM raced at Donington in 2002 and 2003; Jean Alesi won both years for AMG Mercedes. The venue also held the Motocross des Nations in September 2008, and the 6 Hours of Donington for the European Le Mans Series in 2006 and 2012.
The British motorcycle Grand Prix was held at Donington from 1987 until 2009, following the move of the race from Silverstone. The circuit lost the MotoGP contract in 2009 as part of the collateral damage from the failed F1 bid.