Founded after the merger of two clubs, named Racing and Sport, Badajoz became a serious member of the Spanish League in 1931, when Francisco Fernandes Marquesta donated the team their first ground, named El Vivero. Subsequently playing most of their history between the third and second divisions, the club achieved a consistent stay in the latter level during the 90's.
Never quite good enough to reach La Liga, 11 seasons in the second division came to an end in 2004, with relegation to Segunda División B, the new third level created in 1977. In 2006, Badajoz was saved from folding by the president of a junior club from the city, AD Cerro de Reyes, who replaced them in the third level, with Badajoz falling to the fourth.
On 1 July 2012 Badajoz was relegated to division four, due to a €70,000 debt contracted with its players during the 2011–12 season. being later disbanded through a liquidation process.
After the dissolution, the club was refounded by the supporters with the name of Club Deportivo Badajoz 1905. This re-foundation achieved two consecutive promotions for promoting immediately to Tercera División and, at its third attempt, the club finally came back to Segunda División B on 25 June 2017 by beating CD Calahorra in the last round of the promotion play-offs.
CD Badajoz plays at Estadio Nuevo Vivero, which had a capacity of 15,200, expandable to 30,000. The club previously played at Estadio El Vivero in the east of the city, before moving a few kilometres south of the Guadiana in 1998 to the new facilities; the first match at the new grounds took place on 2 December 1998, in a friendly goalless match with neighbours CF Extremadura.