Archaeologists have proposed that Kfar Kama was the village Helenoupolis that Constantine established in honor of his mother Helen. Excavations carried out in 1961 and 1963 revealed 4th century tombs. Two churches dated to the early 6th century, one dedicated to Saint Thecla, were uncovered, with multicolored mosaics of floral, animal and geometric patterns. In the Crusader period it was known as Kapharchemme or Capharkeme. Ruins and parts of five limestone columns were found in addition to a circular basalt olive-press and cisterns.
In 1596, Kfar Kama appeared in Ottoman tax registers as a village in the Nahiya of Tiberias in the Liwa of Safad. It had a population of 34 Muslim households and paid a fixed tax rate of 25% on agricultural products, which included wheat, barley, summer crops, cotton, and goats or beehives; a total of 5,450 akçe. A map from Napoleon's invasion of 1799 by Pierre Jacotin showed the place, named as El Hadaci. In 1838, it was mentioned as a village in the Tiberias district. In 1870s, the village was described as having basalt stone houses and a population of 200 Moslems living on a plain of arable soil. In 1878, a group of 1,150 Circassian immigrants from the Adyghe tribe Shapsugs who were exiled from the Caucasus by the Russians to the Ottoman Empire due to the Russian-Circassian War settled in the village. Initially they made their living by raising animals, but later became farmers. The first school was established about 1880. A population survey in 1887 found 1,150 inhabitants, all Circassian Muslims.
At the time of the 1922 census of Palestine by the British Mandate authorities, Kfar Kama had a population of 670 Muslims and 7 Christians, decreasing slightly in the 1931 census to 644, one Christian and the rest Muslims, in a total of 169 houses. In 1945 census by the Mandate, the population was 660 people and the land area was 8,819 dunams. Of this, 8,293 dunams were allocated to cereal farming, while 108 dunams were built-up land.
Kfar Kama is one of two Circassian villages in Israel. The other one is Rehaniya. The Circassians are Muslims, who unlike the main Israeli Arab Muslim minority, perform military service in the Israeli Defense Forces. The village school teaches in Circassian, Hebrew, Arabic and English. A Center for Circassian Heritage is situated in the village.
