Neheim-Hüsten existed from 1941 to 1974. It was created by merging the town of Neheim and the municipality of Hüsten. The town was incorporated into Arnsberg in 1975 and continues to exist as a single district.

Neheim was first documented in 1202. The town was fortified in the 13th century. On July 25, 1358, the town was granted town rights by Count Gottfried IV of Arnsberg.

The first metalworking factories were established in the 1830s. Over time, entrepreneurs increasingly specialized in the production of kerosene lamps and their accessories. This industry experienced a boom, particularly after the connection to the railway in the 1870s. However, this phase ended, partly due to competition from electric lighting. Some entrepreneurs responded by switching to the new technology even before the First World War.

When the dam wall of the Möhne Dam burst during a bombing raid on May 17, 1943, a flood wave up to 12 meters high also destroyed the buildings in Neheim near the river. There were deaths among the civilian population and many victims among the people in the forced labor camp.

Central Kino Center is one of the two remaining cinemas in Neheim.