Historically part of the West Riding of Yorkshire, the village was mentioned in Domesday Book as Chirchebi. The suffix Malzeard was added by the early 12th century. In medieval times the honour of Kirkby Malzeard included large areas to the west of the village in upper Nidderdale, and the parish came to include several townships:
Azerley
Fountains Earth
Grewelthorpe
Hartwith cum Winsley
Laverton
Stonebeck Down
Stonebeck Up
The townships became separate civil parishes in the 19th century. In mediaeval times there was a castle at Kirkby Malzeard, held by the de Mowbray family. When Roger de Mowbray participated in the Revolt of 1173–74 against King Henry II, the castle was besieged by the Bishop elect of Lincoln, and Mowbray surrendered it, together with Thirsk Castle, to the King: both castles were demolished. In 1307, King Edward I granted Kirkby Malzeard the right to hold two fairs annually, and a weekly market on Wednesday. These were subsequently abandoned, but revived in 1816. In 1871 the fairs were still held, but the market had lapsed again. In 1866 a landowner named Joseph Helliwell demolished the Market Cross. There was an outcry, and after a year of litigation, Helliwell was compelled to remove a cottage and part of his house that were encroaching on the Market Place. A new Market Cross was erected by public subscription, inaugurated on 30 September 1868. Several newspapers and documents relating to the market place and the cross were placed in a sealed bottle when the foundations were laid. The writer and historian William Grainge was born to a farming family in the village.
Amenities
The Highside Playing Fields, which provide facilities for several sports, were created in the 1970s. One of the benefactors was Bing Crosby, who came shooting in the area in 1975. He donated £1,250 towards the playing fields, and visited them during a cricket match in 1976. There is a convenience store and a butcher in Kirkby Malzeard, as well as one pub, the Queens Head. A second pub, The Henry Jenkins,, closed on 29 June 2008, and in 2016 is derelict. The Shoulder of Mutton, a seventeenth century listedprivate house, was formerly a pub.
Governance
An electoral ward in the same name exists. This ward stretches south to Sawley and has a total population taken at the 2011 census of 3,109.