American inventor Thomas Edison successfully recorded himself singing "Mary Had a Little Lamb" on the very first phonograph in 1877, and established a company to exhibit it the following year. The invention was initially successful as a novelty, despite the fact the tin foil on which recordings were made could only be played a couple of times and it was very difficult to operate, but the fad soon wore off. After Edison abandoned the machine to work on other projects, telephone inventor Alexander Graham Bell worked on improvements, eventually receiving patents for his innovations.

On 23rd November, 1889, Louis Glass demonstrated the very first coin operated phonograph at the Palais Royal restaurant in San Francisco. Glass, general manager of the Pacific Phonograph Company two blocks away, and his business partner William S. Arnold been permitted by the proprietor, Fred Mergenthaler, to demonstrate the machine in the restaurant. Patrons listened to the music by holding a listening tube to their ear, as recording amplification had not yet been developed. Despite this, the machine was massively popular, grossing over $1000 in its first six months of service.

John Gabel invented the first important jukebox to offer multiple selections in the early 20th century. The machine was called the Automatic Entertainer, featured 24 selections, and was produced and patented by the owned company in Chicago.

Jukeboxes received a major boost in the 20's with the introduction of electronically recorded records. Electrical amplification was introduced to the world with the Electramuse, but the machine didn't meet with wide popularity because patrons couldn't select songs. The first truly modern jukebox was introduced by Automatic Musical Instrument Company, which produced the first electrically amplified, 20-selection, coin-op phonograph which held ten records which could be played on either side.

The Golden Age of jukeboxes began in the thirties, when the Great Depression increased the demand for the kind of affordable entertainment that they provided. Soon, the manufactures placed jukeboxes in saloons, diners, and anywhere else people might have some time and a nickel to spare. It was in this era that much of the aesthetic features commonly associated with jukeboxes were developed. The J. P. Seeburg Corporation introduced transparent plastics in 1938, and other new design effects like nickel-plated castings soon followed.

The very first known written instance of the word juke-box being used was in a 1939 Time Magazine article about legendary musician, composer, and musical director Glenn Miller. In it, the author wrote "Glenn Miller attributes his crescendo to the 'juke-box', which retails recorded music at 5 cents a shot in bars, restaurants and small roadside dance joints."

During World War II from 1942 until early 1946, jukebox production was halted by the US government to conserve labor and materials for war efforts. Wurlitzer's 1946 model 1015 (6527) was the most popular of the era with more than 56,000 units shipped under the slogan "Wurlitzer Is Jukebox."

The "silver age" of jukeboxes began around 1950. It was in this era that the jukeboxes featuring 100 selections of 45 rpm singles became standard, and the design effects most commonly associated with jukeboxes began to appear, such as shiny chrome, bubbles, and colorful lighting.