In 1517, the village was included in the Ottoman empire with the rest of Palestine, and in the 1596 tax-records it appeared as Um al-Ganam, located in the Nahiya of Tabariyya, part of Safad Sanjak. The population was 8 households, all Muslim. They paid a fixed tax-rate of 25% on agricultural products, including wheat, barley and summer crops, in addition to occasional revenues, and goats and beehives; a total of 1,910 akçe. In 1875, Victor Guérin found here "several ancient cisterns, still unbroken, and ancient caves cut in rock, which now serve as refuge for shepherds." In 1881 the Palestine Exploration Fund's Survey of Western Palestine found at Kh. Umm el Ghanem: "Heaps of stones, a few of which are hewn, all of small size, one small cave and one cistern."
In the 1922 census of Palestine conducted by the British Mandate authorities, Umm al Ghanam had a population of 52, all Muslims. In the 1931 census the population of Umm al-Ghanam was counted with that of Reineh, together they had 1015 inhabitants in a total of 243 houses. In the 1945 statistics the population of Umm al-Ghanam was counted with that of Mount Tabor, and their total land area was 8,409 dunams, according to an official land and population survey. Of this, 232 dunams were allocated for plantations and irrigable land, 6,215 for cereals, while a total of 1,962 dunams were classified as non-cultivable land.
The town was formed in 1992 as a result of a municipal merger of the villages of Shibli and Umm al-Ghanam. Shibli High School is attended by 270 Arab students, Special educational programs introduced at the school have boosted the Bagrut matriculation pass rate and percentage of graduates attending university. Hassan Saida of Shibli–Umm Al-Ghanam owns a collection of small cast lead books featuring what is believed to be the first-ever portrait of Jesus. The books are thought to have been created by followers of Jesus in the first decades after his crucifixion. The books, containing cryptic messages in Hebrew and ancient Greek, have been in Saida's family since they were found by his great-grandfather.