The earliest documentation of Naila dates at 9 January 1343.[3] The first settlements in the area around Naila probably happened between the 12th and 14th century. The name Naila first appeared as "Neulins" (and variations thereof), has its origins most likely in the meaning "Small new settlement". In 1454, Naila was awarded a coat of arms by its overlord, Margrave John.
After a brief episode under Prussian reign (1792–1810), Naila was included into the newly-established Kingdom of Bavaria. In 1818, it was awarded town privileges and in 1886, a railroad station was opened in Naila.[3] After World War II, the Iron Curtain, just 8 km (5.0 mi) north of Naila, cut off a large part of the market for the local industries.
The town was the seat of the then district of Naila until this was merged into Hof district in 1972, and had to give up their number-plate code NAI in favour of HO. The villages of Marxgrün, Lippertsgrün and Marlesreuth were incorporated to Naila in 1978.[3]
