The early history of the Smooth Collie, like that of many dog breeds, is a matter of speculation. Even the origin of the breed's name is unclear, variously claimed to describe the early shepherd dog's dark colour ("coaly") or derived from the name of a breed of sheep with black faces once commonly kept in Scotland ("Colley") or derived from an Anglo-Saxon word meaning "useful." The word could also trace to Gaelic or/and Irish - in which the words for "doggie" are, respectively, càilean and coileán. This would be more consistent with the breed's origin in the Gaelic-speaking Scottish Highlands than an Anglo-Saxon term.

Smooth Collie circa 1915

The modern history of both the Smooth and Rough Collie began in the reign of Queen Victoria, who became interested in the shepherds' dogs while at Balmoral Castle in Scotland. In 1860, she purchased some of the dogs for her own kennel. With the Queen's interest, it became fashionable to own Smooth Collies. Thus began the breed's transformation from working farm dog, similar to the modern Border collie, to the dog bred as a pet and for the sport of conformation showing that we know today.

The Smooth Collie today is considered a variety of the same breed as the Rough Collie in the United States, Canada, meaning that they can interbreed and some statistics are kept only for "Collie" rather than for both varieties individually. The smooth and rough are classified as separate breeds in other countries, such as the United Kingdom, and Australia. The latter is a fairly recent development, however, with the Kennel Club (UK) allowing the interbreeding of the two varieties until 1993.

A breed society, the Smooth Collie Club of Great Britain, was established in 1955 . The breed was definitively accepted by the Fédération Cynologique Internationale in 1974The Smooth Collie is a breed of dog developed originally for herding. It is a short-coated version of the Rough Collie of Lassie fame.   Some breed organisations consider the smooth-coat and rough-coat dogs to be variations of the same breed.  The Smooth Collie is generally a sociable, easily trained family dog. Although not an aggressive breed, they are alert and vocal, making them both good watchdogs if well trained and potential nuisances if allowed to bark indiscriminately. Collies are agile and active dogs and need regular exercise in some way. This breed is easy to train, due to its high intelligence and eagerness to please its owners. Training this breed requires a light touch, as they are sensitive to correction and shy away from harsh treatment. They get along well with children and other animals, usually getting along with other dogs. Smooth Collies are used both as family pets and in obedience competition, agility, herding trials, and other dog sports. Some are still used as working sheepdogs. They are also very useful as assistance dogs for the disabled.