A settlement of Rasskazovo was founded in 1698. It was named after Stepan Rasskazov, a native of Morshansk and first settler in the area. In the 18th–early 20th century, Rasskazovo was known for its cottage industries, such as stocking knitting, skin dressing, candle and soap production. In 1753, a cloth factory was built and later a dyeing manufactory. Rasskazovo was granted town status in 1926.