Barracas Central has a rich history that dates back to April 5, 1904, when a well-dressed man (in Spanish: "El Guapo"), named Silvero Ángel Gardella, or simply "Saquito", founded the club. Gardella was a soccer enthusiast and admired the champion of that time, Alumni Atletic Club (existed in 1901–1913). He wanted to create a club that will repeat their success and chose the same colors of red and white.

The founding of Barracas Central took place in the kitchen of Gardella's house located at Suárez 2745, where the club's name was decided upon. Despite different suggestions like Estrella del Sud or Estrella de Barracas, Gardella ultimately chose Barracas Central del Sud, which was later shortened to its current name. The old wooden house was transformed into a clubhouse, and the field was installed on vacant land owned by Gardella's father. Gardella not only founded the club but also played as a center forward and captain, in addition to serving as the first president of the institution.

Barracas Central's home games are currently played at Estadio Claudio Tapia (from its foundation in 1916 and to 2008 known as Estadio Olavarría y Luna), named after the former player and president of the club for almost 20 years.

The club has a small but faithful barra brava La Banda de Barracas. Although Barracas Central does not have a definite clásico, Club Atlético San Telmo is often considered to be the main rival, due to the proximity of the area and the similar number of supporters.

Gimnasia L.P. 2:1 Barracas Central