Club Deportivo Pozuelo were founded on 28 August 1943, and were renamed to Pozuelo Club de Fútbol. In 1975, they changed to Unión Deportiva Pozuelo and played for two seasons in Tercera División. Parque Atracciones Pozuelo Club de Fútbol, however, were founded in 1975, renamed to Parque Atlético Pozuelo Club de Fútbol in 1980, and only played in the regional leagues.
In 1995, both clubs merged to form Club de Fútbol Pozuelo de Alarcón. The new club took the place of Parque Atlético in the Regional Preferente, while the place of UD Pozuelo went to the reserve team (which folded in 2002). Pozuelo first reached the fourth tier in 2007.