The municipality was created in 1970 due to a kommunalreform ("Municipality Reform") that combined a the following parishes: Bredsten, Egtved, Jerlev, Nørup, Randbøl, Vester Nebel, Ødsted, and Øster Starup parishes.
Egtved municipality ceased to exist as the result of Kommunalreformen ("The Municipality Reform" of 2007). It was merged with Børkop, Give, Jelling, and Vejle municipalities to form a new Vejle municipality. This created a municipality with an area of 1,055 km² and a total population of 82,935 (2005). The new municipality belongs to Region Syddanmark ("South Denmark Region").