The denomination was one of the original coins first authorized in 1792, and production began the following year. These coins were much smaller than dimes, in diameter and thickness, appearing to be "half dimes". In the 1860s, powerful nickel interests successfully lobbied for the creation of new coins, which would be made of a copper-nickel alloy; production of such coins began in 1865 and were struck in two denominations — three cents and five cents (the latter debuting in 1866).

The introduction of the copper-nickel five-cent pieces rendered the silver coins of the same denomination redundant, and they were discontinued in 1873.

The following types of half dimes were produced by the United States Mint:

Flowing Hair Pattern, 1792; Flowing Hair 1794-1795; Draped Bust (Small Eagle Reverse) 1796-1797; Draped Bust (Heraldic Eagle Reverse) 1800-1805; Capped Bust 1829-1837; Seated Liberty (various subtypes) 1837-1873;

In 1978 a coin collector surprised the coin collecting community with an 1870-S half dime. According to mint records for 1870, no half dimes had been minted in San Francisco; yet, here was a genuine 1870-S half dime. At an auction later that same year, the 1870-S half dime sold for $425,000.

Canada also once used silver coins of five-cent denomination; they were colloquially referred to as "fish scales," due to the fact that they were very thin (the term "half dime" never having been used in Canada), and were produced until Canada also switched to nickel five-cent pieces in 1922. With the decision to change to nickel, the remaining stock of 5 cent silver, including almost all of the 1921 production, was melted down. Only about 400 examples of the 1921 5 cent survive today and these coins rank among the best known rare coins in the annals of Canadian numismatics.