The town of Vlotho has only been documented since 1185, but is said to be much older. Traces of settlement dating back 6000 years and burial mounds from the following millennia were found in the urban area. A 2000-year-old Saxon refuge castle is located directly in the city area. At that time, the famous Frankfurter Weg trade route also ran through Vlotho. A Carolingian royal court from the year 850 in place of today's castle has also been proven. The name of the town of Vlotho goes back to its location on the floodplain of the trout stream = Vlothowe. This is exactly where the Lords of Vlotho built the Schune moated castle. However, this was soon given up and the lords moved the headquarters to the Amtshausberg in Vlotho Castle in order to be able to better monitor the trade routes. The Weser in particular was an important trade route. For a time, Vlotho was the most important cigar town in the Ravensberger Land, since the tobacco came here directly from Bremen. However, after the railway became more and more important and shipping on the Weser became unprofitable, Bünde became the most important cigar town. Due to its location in the narrow valley, only a few businesses have been able to settle in Vlotho since then.
The third oldest house in Vlotho dates back to 1604. There has been an inn called Alt-Heidelberg since 1886, which has changed hands several times.