In 1928, the road between Shippensburg and Newburg was designated as part of PA 333. PA 696 was designated in 1930 to run from US 11 in Chambersburg northeast to PA 996 (Main Street) in Scotland, running along Scotland Road. In 1937, PA 696 was extended north from Scotland to PA 641 in Newburg, replacing the section of PA 333 between Shippensburg and Newburg. The south end of the route was cut back to its current location at PA 997 in the 1960s, with the road between Chambersburg and Scotland becoming unnumbered. In the 1970s, PA 696 was extended north from Newburg to PA 997.