In a highly panoramic position, this is one of the highest municipalities in Italy and a renowned skiing facility.
The area was inhabited since pre-Roman times, as documented by a bronze plate with an inscription in the ancient language of the Caraceni. The piece, now in the British Museum, was found near the Romito Mountain. Fortified structures going back to Samnite times, were found on the Monte Cavallerizzo.
In Norman times Capracotta was at first a feifdom of the Borrello family, then under the Angevin domination its lord was Francesco della Posta (1269). In the 14th century it was under the Carafa family, in the 15th under the Evoli and in the 17th passed to the Cantelmo, while its last lords were De Riso. There was a massive destruction in the second world war.