The wire fox terrier was developed in England by fox hunting enthusiasts and is believed descended from a now-extinct rough-coated, black-and-tan working terrier of Wales, Derbyshire, and Durham. The breed was also believed to have been bred to chase foxes into their burrows underground, and their short, strong, usually docked, tails were used as handles by the hunter to pull them back out.

Although it is said Queen Victoria owned one, and her son and heir, King Edward VII of Great Britain did own the wire fox terrier, Caesar, the wire fox terrier was not popular as a family pet until the 1930s, when The Thin Man series of feature films was created. Asta, the canine member of the Charles family, was a Wire-Haired Fox Terrier, and the popularity of the breed soared. Milou (Snowy) from The Adventures of Tintin comic strip is also a Wire Fox Terrier.

In the late 20th century, the popularity of the breed declined again, most likely due to changing living conditions in the Western world and the difficulty of keeping hunting terriers in cities due to their strong instincts. Among the less desirable traits of all fox terriers are their energy, digging, stalking and chasing of other animals, and yelping bark.

The wire fox terrier has the distinction of having received more Best in Show titles at major conformation shows than any other breed. Wire fox terriers kept as pets show the loyalty, intelligence, independence, playfulness and breeding befitting such a storied breed.