The first instances of painting with Falu Rödfärg Paint date back to the 16th century, manufactured as a by-product of the mining process in the copper mine in Falun. During the 17th century it was mainly used to paint distinguished buildings in cities as an imitation to the stone-houses found on the continent, a practice that was considered very exclusive.

By the beginning of the 18th century red paint was commonly used in cities and authorities would some time require that the that the façade of buildings to be painted red but the use spread to the country-side and manor estates, churches and courthouses. Reports from the time show that painting red had now became common, and it is also during the 1700s that the preservative properties of the Red Paint were observed and buildings were painted red not only for the aesthetical reasons.

During the 19th century the use of the paint spread further and now farms and barns were also painted red while in the cities oil paints became popular and the use of brighter colours such as yellow and white became fashionable, but years at the late 1800s and early 1900s were the main period of national romanticism in Swedish culture which swept the country and the dream of the little red cottage was established with the help of contemporary literature and painting. Most notable is Carl Larsson and his images that depicted his red-painted Sundborn Estate. The publication of Storgården (The Big Manor) in 1900 which became the "bible" of the folklore movement the dream of the red cottage take shape with its description of the big manor with its red-painted buildings as a symbol of Sweden's cultural heritage.

Emerging from the same environment was the Home-Ownership movement which took place during the 1930s which in turn drove the sales of Red Paint higher as the standard design and models of buildings in rural areas required them to be painted red. In the years just after the Second World War the newly-introduced acrylic and modern oil paints became widely used and pushed the red paint from the limelight.

Recent years saw resurgence in use of red paint. It is no longer considered old fashioned and instead it's its environmental qualities that are appreciated and the paint is again popular with home-owners as well as with young architects who use the paint to achieve a striking Swedish image which is both traditional and modern at the same time.