Nefta is believed to have been settled originally by shepherds who came from the kingdom of Napata. The Romans and later the Byzantines built forts in the oasis (Nepte) to provide protection against raids by desert nomads. In Byzantine times Nefta and Tozeur were episcopal sees. In the mid-7th century Nefta was conquered by the Arabs and, in spite of fierce resistance, converted to Islam. A Christian community was however recorded as late as 1194[1]

In subsequent centuries Nefta prospered as an important staging-point for caravans (for a time the most important in Tunisia). Its decline began in the 15th century as a result of more frequent raids by nomadic tribes and the general falling off in the caravan trade. With the coming of the French in 1881, however, Nefta experienced a renewal.

The salt-flats near Nefta were used as a filming location for the Star Wars movies in the late 20th century. During the film's construction, the directors chose the town to host Luke Skywalker's house.[2][3]