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The club was established in 1980, taking their name from Haughmond Hill, which overlooks the club's ground. They later joined the Shropshire County Premier League and were Premier Division runners-up in 2008–09 and 2009–10, before winning the league and the Ron Jones Memorial Cup in 2010–11. The club were subsequently promoted to Division Two of the West Midlands (Regional) League, and went on to win Division Two the following season, resulting in promotion to Division One. In 2013–14 the club were Division One runners-up and were promoted to the Premier Division.

The 2016–17 season saw Haughmond win the West Midlands (Regional) League Premier Division, resulting in promotion to the Premier Division of the Midland League. Although they finished third-from-bottom of the Premier Division the following season and were relegated back to the West Midlands (Regional) League, the club were runners-up in the West Midlands (Regional) League Premier Division in 2018–19, earning an immediate promotion back to the Premier Division of the Midland League. The 2021–22 season saw the club relegated to Division One after finishing bottom of the Premier Division. They subsequently finished bottom of Division One the following season and were relegated to the Premier Division of the Shropshire County League.