Founded in 1906 by a British professor, Fola was the first football club in Luxembourg. During its heyday, it was the best club in the country, winning four National Division championships and two Luxembourg Cups between 1918 and 1924. Fola won another championship in 1930 and the Luxembourg Cup in 1955, but has since this time lost its place in Luxembourg's top flight.
Fola stubbornly rejected a merger with its larger neighbours, Jeunesse Esch, during the wave of consolidation in the 1990s. In 2004–05, Fola was relegated to the third tier of Luxembourgian football, but were promoted the following season. In 2006–07, they finished third, qualifying for a promotion play-off, which they lost to Victoria Rosport. In August 2007, Fola pulled off a transfer coup by signing former Morocco midfielder Mustapha Hadji.
In 2008, the club managed to secure second place in the championship, granting them promotion to the Fortis League (the top league in the country).
In May 2013, CS Fola Esch wins the championship in the BGL Ligue at the 25th playday with a historical result of 5–1 against their rival Jeunesse Esch. The club had to wait 83 years since their last championship. Stefano Bensi scored 20 goals during this season. Fola participated at the second qualifying round of the Champions League 2013–14 but lost to Dinamo Zagreb 0–5 in the first leg (at home) and 0–1 in the second leg (away).