The community was founded in 1979 as a result of the dissocation of the secular nucleus from the religious nucleus in Mitzpe Yeriho, a nearby settlement to the west of Vered Yeriho. The moshav is located on a hill overlooking the Akabat Jabar refugee camp and Jericho. From the boardwalk of the moshav one can see the casino of Jericho and the northern Dead Sea.
During the second Intifada the moshav was attacked by Arab terrorists, and IDF increased its activity in the region as a response. On one of the worst days, terrorists encamped on the roof of the casino in order to gain a good vantage point on what was happening around them, and started to shoot at IDF positions. The IDF, in response, blew up the entrance to the casino in order to neutralize the terrorists, who were also shooting at the moshav.
As of 2008, Vered Yeriho numbers 130 residents, and is accepting new residents.