Though the first Lancaster Lunesdale CC was formed in 1841 the club disbanded in 1852. The present club was formed as The Lancaster Cricket and Lawn Tennis Club in April 1879. After leasing a ground on the Giant Axe Field, the club moved to their present ground soon later, playing their first match at Lune Road on 3 June 1882.

Lancaster CC became founder members of the North Lancashire League in 1892, winning the championship on seven occasions and joined the Ribblesdale League in 1923, becoming champions in 1936 and 1947.

The club was a founder member of the Northern League in 1952 and has won the league on six occasions, in 1957, 1976, 1977, 1978, 1979 and 1986. Lancaster have been division two champions outright on a record 16 occasions, also sharing the title in 1985. Lancaster also lifted the Meageen Cumbrian Cup in 1987 and 1990.

Lune Road staged Lancashire's county championship game against Warwickshire in 1914.

Michael Staziker was Lancaster's professional for 16 seasons between 1972 and 1987. South African Mark Boucher, who holds the record for most Test dismissals by a wicketkeeper was Lancaster's professional in 1997, going on to make his Test debut in October of that year.

Recent professionals have included West Indies and Durham all-rounder Gareth Breese, Pakistan opener Taufeeq Umar, Zimbabwe international Maruma and for 2013 and 2014 the returning Jannisar Khan.