The pier was built by the Steel Pier Company and opened on June 18, 1898. It was built on iron pilings, using a concrete understructure with steel girders. In 1904, a storm washed away part of Steel Pier, and many engineers stated that it could not be rebuilt. Atlantic City's future mayor, Edward L. Bader, and his company accepted the challenge to rebuild it. His success with that job led to more work for him in Atlantic City.

In 1924, a fire caused significant damage to the pier. Frank Gravatt purchased the pier the following year and renovated it. He was called the "salt water Barnum" by the local newspaper. The restored pier hosted dance bands, three movie theaters, exhibits, operas, children's shows, a water circus, stunts, and other attractions. Gravatt signed John Philip Sousa for a series of annual concerts. The General Motors Exhibit opened in 1926 and continued through 1933, when it was replaced by Ford. (General Motors returned in 1947 and continued until 1968.) From 1935 through 1938, the Steel Pier was where Miss America was crowned. It was described as "An Amusement City at Sea" and "A Vacation in Itself". It also was once called the "Showplace of the Nation" and included such acts as the High Diving horse; Rex the Wonder Dog, the Human Cannonball, a water-skiing canine in the 1930s; the diving bell; and musicians, including Frank Sinatra and Al Jolson, among others. Diana Ross and The Supremes played week-long engagements during the summer in 1965, 1966, and 1967, to sold-out business in the Steel Pier's Music Hall Theater and the Marine Ballroom. "Rain or Shine ... There's Always a Good Show on Steel Pier" was another phrase used to describe the venue's varied entertainment.

In 1945, the pier was purchased by George Hamid, who operated the competing Million Dollar Pier. He brought popular and rock and roll music to the pier, starting with Bill Haley and the Comets in 1955. Parts of the pier were damaged or lost during the Ash Wednesday Storm of 1962. The Beatles were booked in 1964, but overwhelming demand for tickets forced them to move to Boardwalk Hall. The pier used to be much longer, but a December 1969 fire six months before the opening of the 1970 season shortened it by about a third.

By the end of the 1960s, the pier was feeling the effects of declining tourism in Atlantic City. The pier was sold to a group of local businessmen in 1973. After gambling was legalized, a developer proposed turning the pier into a hotel-casino. However, the necessary governmental approvals could not be obtained, and the pier was sold to Resorts International in 1978, which mainly used the pier for storage. The original wooden pier with steel underpinnings was destroyed in a 1982 fire; the current concrete structure dates from 1993. Trump Entertainment acquired ownership of the pier when it acquired the Trump Taj Mahal in the late 1980s. The Trump Steel Pier opened in 1992, but had been reduced to about 1,000 ft (300 m) and featured mainly amusement rides. The Steel Pier continues to operate as an amusement park to this day. When Trump acquired the steel pier, he connected it to his main casino and built a hub for tram car rides.

In June 2008, the Steel Pier celebrated its 110th anniversary, having originally opened on Saturday, June 18, 1898. All rides were free that day from midnight on June 18 to midnight on June 19.

In February 2012, it was announced that a diving horse act would return to the Steel Pier as part of the recently approved Tourism Master Plan, but the plan was soon scrapped after public outcry.

In 2017, a newer and bigger giant Ferris wheel was added to the pier. LEDs were also added to the new ferris wheel, and the ferris wheel shines from 4:30 to midnight every day.