The exact year of formation is unsure but it is believed to be either 1937 or 1939 under the guise of Oadby Imperial. The club did not have to wait long for their first honours winning the "City Medals" competition in the 1939/40 season. Around 1943 the club merged with a local junior side to become Oadby United, two years later in 1949 they reverted back to original name of Oadby Imperial which coincided being accepted into the Leicestershire Senior League Division 2 for the 1949/50 season. The first season saw the club finish in 11th place out of 16. In 1951 Oadby Imperial changed their name to become Oadby Town FC. In the same year they won the Leicestershire Senior League Division Two Championship and were promoted to Division One (later Division One became the Premier League and Division Two became Division One).
The 1956/57 season saw the club finish as runners-up in the Leicestershire Senior League to Leicester City 'A' and also were runners-up to Whitwick Colliery in the Coalville Charity Cup. It was until 1963 that the club won its first major honours winning the Leicestershire Senior Cup for the first time beating Newfoundpool WMC in the final. The following season saw three pieces of silverware collected. As well as retaining their Leicestershire Senior Cup crown, Oadby also were Leicestershire Senior League champions for the first time and won the Coalville Charity Cup for a second time. It was to be a further four years (1967/68) for Oadby to regain the Senior League crown and for good measure they retained their Senior League title the following year and also added the Leicestershire Challenge and Rolleston Charity Cups. A fourth Senior League crown was achieved in the 1972/73 season. This was to be the last league title for over twenty years as it was not until the 1994/95 season that they regained the title. Titles six, seven and eight came in three consecutive years between 1997 and 1999, the latter resulting in promotion to the Midland Football Alliance.