Kfar Adumim was founded in 1979 and is home to about 400 families today. The founding members dreamed of a place where a religious and secular population could live together as a cohesive community. There are educational institutions from kindergarten to high school within the town, and the active youth group is the Israeli Scouts movement, HaTzofim.

Employment in Kfar Adumim includes an olive grove, a grove of sabra (prickly pear) fruit without thorns, a olive canning factory, welding workshop, garage, nursery, silversmith workshop, carpentry shops, gas station and a horse ranch.

Kfar Adumim is just off the main road between Jerusalem and the Dead Sea and there are various different tourist attractions in the vicinity such as visitor centers and biblical-style attractions, restaurants, vacation rentals and rustic desert accommodations. The Prat Stream Nature Reserve is also just below Kfar Adumim.