This town, along with the region, came under the rule of the Assyrian Empire around the 8th century BC, and was subsequently ruled by the Medes and then by the Persians during the reign of emperor Cyrus the Great in 546 BC.

In 333 BC, Alexander the Great defeated the Persians and after his death, the surrounding area came under the rule of the dynasty of Ariarathes with Mazaka (present-day Kayseri) as its capital. The Cappadocian kingdom became a province- of the Roman empire in the reign of Emperor Tiberius.

Medieval history
The so-called underground cities found around Nevşehir may originally have been built to escape persecution by the pagan Roman authorities although others believe they date back to Hittite times.

Many of the churches, hewn in the rocks, date from these early years of Christianity. Even when Theodosius I made Christianity the official religion of the empire, the caves offered protection for the local people during raids by the Sassanid Persians circa AD 604 and by the Islamic Caliphate from AD 647 onwards.

When Iconoclasm became state policy in the Byzantine empire, again the caves around Nevşehir became shelters for those escaping persecution.

The castle on the hill in the middle of Nevşehir dates from the Byzantine period, when the region was on the frontline in the (holy) wars against the Islamic Caliphate.

At the Battle of Manzikert (present-day Malazgirt) in AD 1071, the Byzantine emperor Romanos IV was defeated by the Seljuk Sultan Alp Arslan which led to the occupation of Anatolia by the Seljuks by 1074. Along with the rest of the region, Nevşehir became part of the Seljuk Sultanate of Rum, then fell under the rule of the Karamanid dynasty in 1328 and finally under Ottoman rule around 1487 AD when it was renamed Muşkara. It remained relatively insignificant until the early 18th century.

Modern history
The present-day city owes its foundation in the so-called Tulip Age to the grand vizier and son-in-law of the Sultan Ahmed III, Nevşehirli Damad İbrahim Pasha who was born in Muşkara and later took a great interest in its expansion. The small village with only 18 houses, formerly under the administration of the kaza of Ürgüp, was rapidly transformed with the building of mosques (the Kurṣunlu Mosque), fountains, schools, soup kitchens, inns and bath houses, and its name was changed from Muşkara to “Nevşehir” (meaning New City in Persian and Ottoman Turkish).

In 1730 the grand vizier was assassinated by rebels in İstanbul but by then Nevşehir was firmly established as a town. The present-day city owes its foundation in the so-called Tulip Age to the grand vizier and son-in-law of the Sultan Ahmed III, Nevşehirli Damad İbrahim Pasha who was born in Muşkara and later took a great interest in its expansion. The small village with only 18 houses, formerly under the administration of the kaza of Ürgüp, was rapidly transformed with the building of mosques, fountains, schools, soup kitchens, inns and bath houses, and its name was changed from Muşkara to “Nevşehir” (meaning New City in Persian and Ottoman Turkish). In 1730 the grand vizier was assassinated by rebels in İstanbul but by then Nevşehir was firmly established as a town.

Under the terms of the Convention Concerning the Exchange of Greek and Turkish Populations in 1923, the Turkish speaking Greek Orthodox community (Karamanlis) of Nevşehir was exchanged for Muslims from Osheni, Shak and Revani villages of Kesriye.