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The community was founded in 1979 as a result of the dissociation of the secular nucleus from the religious nucleus in Mitzpe Yeriho, a nearby settlement to the west of Vered Yeriho. The moshav is located on a hill overlooking the Akabat Jabar refugee camp and Jericho. From the boardwalk of the moshav one can see the casino of Jericho and the northern Dead Sea.
During the second Intifada the moshav was attacked by Palestinian militants, and the Israel Defense Forces increased its activity in the region as a response. On one of the worst days, militants encamped on the roof of the casino in order to gain a good vantage point on what was happening around them, and started to shoot at IDF positions. The IDF, in response, blew up the entrance to the casino in order to neutralize the militants, who were also shooting at the moshav.
As of 2008, Vered Yeriho numbers 130 residents, and is accepting new residents.