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The club was established in 1969 as Little Drayton Rangers. They became members of the Shropshire County League and were champions in 1991–92, also winning the Shropshire Premier Cup. In 1998 they joined Division One North of the West Midlands (Regional) League. They were runners-up in their first season in the division, only missing out on the title after having three points deducted, and were promoted to the Premier Division.

In 2000–01 Little Drayton won the Premier Cup again and went on to retain it the following season. In 2003 the club was renamed Market Drayton Town, the name of a former club that had won the Shropshire County League in 1955–56. They won the Premier Cup Cup again in 2003–04 and retained it in each of the next two seasons. After finishing as runners-up in the Premier Division in 2004–05, the club were champions the following season, securing promotion to the Midland Alliance.

The 2008–09 season saw Market Drayton win the Midland Alliance, resulting in promotion to Division One South of the Northern Premier League. They won the Premier Cup again in 2010–11 and 2015–16. In 2021–22 the club finished bottom of Division One West and were relegated to the Premier Division of the Midland League. They finished bottom of the Premier Division the following season and were relegated to Division One South of the North West Counties League.