Fostoria began as a glass-producing house in 1887. Initially, the factory was located in Fostoria, Ohio, but would only be located there a short time. Although the townspeople of Fostoria, Ohio had given their land to the glass company for free, Fostoria Glassworks was unable to remain because of a lack of natural resources. The promise of more abundant resources for producing glass caused the company's leaders to make the decision to move. Within four years, Fostoria moved to Moundsville, WV. In 1891, the company built one furnace capable of firing 14 pieces, a remarkable achievement for the late 19th century glassworks industry. This furnace continued to produce glass until 1972.

By 1925, Fostoria's factory had expanded to include five more furnaces. Primarily, the company produced decorative lamps and stemware pieces for the American home. Competing actively against Cambridge, Heisey, and Westmoreland Crystal, Fostoria would soon emerge as leader in the American glassware market. It is during this period that Fostoria began marketing lines of colored dinnerware and stemware pieces. The new products became an immediate success. The rise of industry throughout the 19th century had Americans turning away from afternoon teas and luncheons. Instead, these events quickly evolved into casual brunches and after work cocktail parties. The colored pieces were ideal for polished casual entertaining.

At one time Fostoria was the largest maker of handmade glassware in the United States, employing nearly one thousand people. The American pattern, introduced in 1915, was made by Lancaster Colony, who bought the Fostoria Company in 1983, until they closed in 1986.