Amsterdam has a long and eventful history. The origins of the city lie in the 13th century, when fisherman living along the banks of the River Amstel built a bridge across the waterway near the IJ, then a large saltwater inlet. Wooden doors on the bridge served as a dam; these protected the town from the IJ, which often flooded the early settlement. The mouth of the river Amstel, where the Damrak now is, formed a natural harbor, which became important for trade. In 1275 Count Floris V of Holland granted the fishermen exemption from tolls. This document, dated 27 October, is the oldest recorded usage of the name "Amsterdam". This meant the inhabitants in the vicinity of Amestelledamme had right to travel through the county Holland without having to pay toll. By 1327, the name had developed into Aemsterdam. Around 1300, Gwijde van Henegouwen, bishop of Utrecht, gave Amsterdam city rights.

In 1323, Willem III established a toll on the trade of beer from Hamburg. The contacts laid through the beer trade formed the basis for subsequent trade with cities of the Hanseatic league in the Baltic Sea, from where during the 14th and 15th centuries the Amsterdammers increasingly acquired grain and timber. In 1342, Count Willem IV awarded the city "Groot Privilege", which greatly strengthened the position of the city. During the 15th century, Amsterdam became the granary of the northern low countries and the most important trading city in Holland. According to legend, on 12 March 1345, the miracle of Amsterdam occurred and Amsterdam became an important pilgrimage town. The town grew considerably thanks to the pilgrims. A Roman Catholic procession (Stille Omgang) occurs every year to celebrate the miracle.

Originating as a small fishing village in the late 12th century, Amsterdam became one of the most important ports in the world during the Dutch Golden Age, a result of its innovative developments in trade. During that time, the city was the leading center for finance and diamonds. In the 19th and 20th centuries, the city expanded, and many new neighborhoods and suburbs were planned and built. The 17th-century canals of Amsterdam and the 19–20th century Defence Line of Amsterdam are on the UNESCO World Heritage List.