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The town was founded in the early Middle Ages, probably around 1000 AD. It is known for its castle, which dates from the 14th century and has been restored several times over the centuries. The original structure was built by a branch of the Orsini family who were lords of Castelgrande until 1394 when they sold it to Giordano di Sanseverino, Prince of Bisignano. In 1559 it passed into hands of Fabrizio Carafa (1520–1570), Duke del Monte and then on to his son Giovanni Andrea I Carafa (died 1602). Castelgrande's main attraction is its medieval castle which dominates much of this small town's skyline.