The earliest traces of human life in the urban area of Jajce date back to the period of Aeneolithic. Remains from the Bronze and early Iron Age (3rd to the end of the 6th century) can be found all around the town.
The mediaeval history of Jajce is associated with Hrvoje Vukshich Hrvatinich, who in 1396 was awarded the title of Conte di Jajce. That was also the first mention of the place. In the middle Ages, Jajce was one of the biggest and most developed settelments in Bosnia and Herzegovina.
In the 15th century, Jajce became an important economic center of the western Bosnia and the political centre and capital of the Bosnian State.
Jajce became a royal town only during the rule of Tvrtko II. In the 15th century, toward the end of the Bosnian State, Jajce became the residence of the Bosnian rulers. The last Bosnian King was crowned there, who resided in the town for two years, and died there in 1463.