The land, on the western edge of the Jezreel Valley, which belonged to the village of Jida, was bought by a group of American Zionists in the early 20's. It was renamed Manor and then Yefe Nof, but was almost deserted after a few years. In 1925, the philanthropist Yisrael Yehudah Adler saved it from bankruptcy and it was renamed in his honour shortly thereafter. Among the establishers of the village were 50 families from Łódź and Białystok who built a textile factory in the village. Weaving and textile manufacturing were, therefore, the local trades. After the founding of modern Israel in 1948, families from Yemen joined the village.
1929 passport issued to the founder of Ramat Yishai.
One of the most known buildings in the village is called "the Khan", a 1909 building with surrounding walls. The logo of the village consists of this Ottoman-era building with a palm tree next to it. The town hall flies 2 logo-on-bedsheet flags with this emblem in dark blue on a light blue and a yellow field, respectively.