In 1032, Holzem was mentioned under the name “Hulcinesheim” in a document issued by Emperor Henry II. In 1428, the aldermen of the city of Luxembourg informed Münster Abbey that Claes and Johann of Holzem were henceforth to be considered serfs of the abbey. In 1585, Margaretha, wife of Steffen Claes of Holzem, was sentenced to death for witchcraft and hanged at the Fetschenhof.
During the Thirty Years’ War, Croatian soldiers serving in the imperial forces massacred the population of Holzem in 1636. The horrors of famine and war were compounded by the specter of the plague. Nearly two-thirds of the population perished. During the French siege of the fortress of Luxembourg, Marshal Créqui relocated the population of Holzem to the vicinity of Longwy.
According to a census, the population fell from 80 inhabitants in 1659 to just 30 people. Gerlingen, a neighboring village, was completely decimated and wiped off the map.
In 1962, the centre of Holzem was completely rebuilt and a new school built.
The end of the 20th century saw the town prosper, with the construction of a large number of houses and the creation of an industrial and commercial zone along the Rue de Capellen.
