The first known settlers, who surfaced between 1100 BC and 800 BC were Illyrians mining copper in the hills near Kitzbühel.
Around 15 BC the Roman Emperor Augustus occupied the Alps and proclaimed the province Noricum. After the fall of the western Roman Empire, Bavarii settled in the Kitzbühel region around 800 and started clearing forests.
In the twelfth century the name Chizbuhel is mentioned for the first time in a document of the Chiemsee monastery. Chizzo relates to a Bavarii clan, Bühel describes the location of the settlement upon a hill.
Kitzbühel became part of Upper Bavaria in 1255. Louis II, Duke of Bavaria granted Kitzbühel the rights of a city on June 6, 1271, and it was fortified with mighty city walls. During the next centuries the city became a center of trade, grew steadily and never was affected by wars. So the city walls were razed at the level of the first floor and used for building new houses.
When Margarete Maultasch married Bavarii Duke Louis V the Brandenburger in 1342, Kitzbühel became part of Tyrol. After the Peace of Schärding (1369) it was given back to Bavaria. On June 30, 1504 Kitzbühel became part of Tyrol again when Austrian Emperor Maximilian conquered Kitzbühel and Kufstein.
Maximilian took mortgage on Kitzbühel, and so at the end of sixteenth century it came under the rule of the Counts of Lamberg. On May 1, 1840 Kitzbühel was given to the state of Austria in a ceremony.
The wars of the 18. and nineteenth century didn't reach the city, whereas some inhabitants participated in the Tyrolean rebellion against Napoleon. Kitzbühel once more became part of Bavaria after the Treaty of Pressburg, but was reunited with Tyrol after the fall of Napoleon, at the Congress of Vienna.
When Emperor Franz Joseph finally resolved the remaining constitutional uncertainties, and furthermore railway construction of the Salzburg-Tiroler-Bahn was finished in 1875, the city's trade and industry flourished. Also during World War I and World War II Kitzbühel remained far from the areas of war.
Kitzbühel is one of Austria's best known and fanciest winter sport resorts, situated between the mountains Hahnenkamm (1,712 m) and Kitzbühler Horn (1,996 m). The Hahnenkamm is home of the annual world cup ski races, including the circuit's most important event, the downhill race on the famous Streif slope. During summer time Kitzbühel also hosts an ATP tennis tournament on clay, the Generali Open.
The Kitzbüheler Alpenrallye is an annual festival of historic automobiles. It was first held in 1988.
The city is also home to the historic Grand Hotel Kitzbühel, a private resort, training and conference facility owned and operated by the worldwide management consulting firm McKinsey & Company. Access to the Grand Hotel is generally limited to members and alumni of the firm and their families.
A further sight is the 3S Aerial Tramway, the aerial tramway with the highest span in the world.
