Shanxi is one of the birthplaces of Chinese civilization. The first Chinese dynasty of the Xia (c.21st-c.16th Centuries BC) was founded in southern Shanxi and western Henan province.

Shanxi was named Jin during Zhou Dynasty (c.11th Centuey-256BC).
During the Spring and Autumn Period (770-476BC), the King of the Jin Kingdom was one of the five powerful prices. The Jin Kingdom was cared up by the Kingdoms of the Han, Zhao and Wei during the period of the Warring States (475-221BC) and became known as Sanjin.

The first Emperor of the Qin Dynasty set up five prefectures in Shanxi: Taiyuan, Shangdang, Hedong, Yanbei and Daijun.

In the Northern and Southern Dynasties (420-589), the Northern Wei Kingdom set up Pincheng (now Taiyuan) as their secondary or auxiliary capital.

At end of Sui Dynasty, Liyuan (First Emperor of Tang) and his son Lishimin (2nd Emperor of Tang) dispatched troops form Taiyuan to overthrow the Sui Dynasty and established the Tang with Changan as the capital. They renamed Taiyuan as Beijing for it was this place that they started their undertaking and founded the Tang Dynasty.

The city of Datong was the secondary capital of Liao and Jin dynasties for more than 200 years.

In the Yuan Dynasty, Taiyuan, Pinyao (now Linfeng) and Datong became major cities along Yellow River Valley.

In the Qing Dynasty, commerce in Shanxi reached its golden period and paid a very important role in the economy of China.

During the War of Resistance Against Japanese Aggression (1937-1945), Mount Taihang and Mount Wutai became the strategic base area for Eighth Route Army of the Communist Party of China