The name 'Krupanj' was first recorded in Ragusan records on 27 July 1417. In the Middle Ages, it was a silver mining site, frequented by Ragusan merchant caravans. Lead ore with the high content of silver was excavated and then transported across the Drina river, where it was melted in Srebrenica, which was a major silver processing center in the Balkans. This process also gave name to the both settlements: larger lumps of ore were called "krupa" (hence, Krupanj) while the Serbian word for silver is "srebro" (Srebrenica). According to the Ragusian papers, in the first half of the 15th century Krupanj already had a court and both the Catholic (Saint Peter and Paul) and Orthodox church (First Krupanj church in Dobri Potok). The settlement was quite developed when in 1459 fell under Ottoman rule with the rest of the Serbian Despotate. In the first wave of conquest, the Ottomans razed down the entire town, which was then rebuilt from scratch. Medieval remnants include numerous stećci with many bas-reliefs which points out to the Branković dynasty.