During the 19th century and supposedly earlier, the area surrounding the Olustvere estate and its manor (supposedly established in the middle of the 16th century) was one of the commercial and social centres of the Suure-Jaani parish, at that time Gross-Sankt Johannis parish, in Livonia. In 1847, Sts. Peter and Paul Orthodox congregation was established at Olustvere (at that time Ollustfer) and a small church was built there in 1849. The congregation's cemetery was located at the nearby locality of Reegoldi. In the beginning of the 20th century, the congregation moved to Gross-St. Johannis, where a new church had been built and a new cemetery established.
Olustvere has a railway station, which was built in 1901.
The present two-storey manor house in Olustvere was built in 1903.