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The club was established in January 1996, six years after Colne Dynamoes folded after being refused promotion to the Football Conference. They joined Division Two of the North West Counties League, with their first league match being a 1–0 defeat by Middlewich Athletic. They went on to finish bottom of the division in their first season. The club finished in the bottom half of the table every season until 2003–04, when they won the division, earning promotion to Division One; the season also saw them win the Division Two Cup with a 1–0 win against Great Harwood Town in the final, as well as reaching the semi-finals of the FA Vase, eventually losing 4–3 on aggregate to AFC Sudbury.

Division One was renamed the Premier Division in 2008. In 2015–16 Colne were Premier Division champions, earning promotion to Division One North of the Northern Premier League. They finished fifth in the division in 2016–17, qualifying the promotion playoffs. However, they lost 4–0 to Farsley Celtic in the semi-finals. As a result of league reorganisation, the club were placed in Division One West for the 2018–19 season. They went on to finish fourth in the division and qualified for the play-offs, losing 2–1 to Leek Town in the semi-finals. In 2022–23 the club finished second-from-bottom of Division One West and were relegated back to the Premier Division of the North West Counties League.