Ilaniya was founded in 1899 as a training farm.
In 1902, it became a moshava, the first settlement in the Lower Galilee.
Many Second Aliyah pioneers, among them David Ben Gurion, worked in Sejera as hired laborers.
Bar Giora established there the first communes of Jewish guards, From within these communes of workers and guards 'Hashomer' was founded in 1909.
The village came under heavy Arab siege during the War of Independence, and was relieved only in July 1948.
After the War of Independence, its name was changed to Ilaniya.