Founded in 1996 by brothers Nick and Simon and their father Mike Floyd in Hammond, Indiana. Since 2000, the brewery has been located in Munster, Indiana. In 2005, Three Floyds opened a brewpub adjacent to the brewery in Munster.

In 2011, an article in the Washington Post said that Three Floyds "has won over the beer geek elite," and "has been making the best beers on the planet for four of the past five years — at least according to the more than 1 million beer reviews logged each year on RateBeer.com.