UD Ibiza was founded in 2015 with the aim to replace the former UD Ibiza-Eivissa that played two seasons in Segunda División B. In June 2017, the club promoted to Tercera División after spending two seasons in the Regional league.[2]
On 7 August 2018, after RFEF blocked Lorca FC's participation in Segunda División B, Ibiza paid the club's debts and achieved an administrative promotion to the third division.[3]
In 2019–20, the club competed in the Copa del Rey for the first time. They defeated Pontevedra and Albacete before a 1–2 home loss to Barcelona in the round of 32, having led the league title holders with 20 minutes to play.[4]