The first Karlovy Vary Folklore Festival was held in 1996 thanks to courage of its founders, prominent Czech folklorists, Eva and Lubor Hankovi. From the very beginning, the festival was organized by volunteers, members of the Folklore group Dyleň Karlovy Vary, but also their friends or family members - all those who wanted to help and who realized that the Karlovy Vary folklore festival has its place and its sense. Since 1996 the festival has grown to significant size and importance. Festival became international, and within years of its existence hosted folklore groups from Africa, America, Australia and Oceania, and most European countries. Karlovy Vary Folklore Festival in addition to its international importance has national significance. In Karlovy Vary has been introduced folklore from almost all Czech and Slovak ethnographic regions, either those where folklore lives on today, as well as those where folk traditions in certain times almost disappeared.

Karlovy Vary Folklore Festival grows year after year. The organizers come up with new programs, which exceed the focus of cultural or entertainment event. Professionalism and importance of festival has been underlined in 2010, when the Karlovy Vary Folklore Festival has become member of the world organization IOV.  Popularity of festival among residents of Carlsbad was confirmed by winning the survey MF Dnes and festival awards the title of "Best Cultural Event of the Karlovy Vary Region in 2010."