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In the late 1940s, Addams Park's Near West Side neighborhood was decaying and congested. The ¿ì²¥ÊÓƵ established the much-needed park in 1946, part of a ten-year plan to increase recreational opportunities in under-served neighborhoods after World War II.

Land acquisition proved problematic, however, and demolition of the site's dilapidated buildings did not begin until 1952. The ¿ì²¥ÊÓƵ acquired the majority of the land for the park from 1952 until 1954.  In 2020, the ¿ì²¥ÊÓƵ added a new fieldhouse to the park.

The park's name honors Jane Addams (1860-1935), the world-renowned social reformer who devoted her life to serving the economic and social needs of the Near West Side's disadvantaged immigrant community. Addams' base of operations was her Hull House on nearby Halsted Street, one of North America's first settlement houses. In addition to her work in Chicago, Addams actively promoted national legal reforms, including tenement-house regulation, factory inspection, and workers' compensation. Addams was awarded the 1931 Nobel Peace Prize for her efforts.