In 870, the village was the site of a battle between the Anglo-Saxons, under Aethelwulf, Ealdorman of Berkshire, and the Danes, which resulted in a resounding victory for the Saxons. The battle was the first of a series in the winter of 870-1. The village is thought to be named after the battle: Englefield meaning either "English field" or "warning beacon field".
Popular local tradition insists that the Queen granted Englefield to her spymaster, Sir Francis Walsingham, although there is no evidence of this. After a succession of short-lived residents, the estate was eventually purchased by John Paulet, 5th Marquess of Winchester, famous for his Civil War defence of Basing House in Hampshire. He retired to Englefield at the Restoration and is buried in the parish church. From his Paulet descendants, the house passed, through marriage, to the Benyon family.
In the late 19th century, Richard Fellowes Benyon rebuilt the villagers' houses as a model estate village and provided them with such amenities as a swimming pool, soup kitchen and a new school. Many of the Benyons have been Members of Parliament, including the current owners, Sir William, and his son, Richard Benyon.