The kibbutz was established 30 August 1938 as part of the tower and stockade settlement project by members of the Maccabi youth movement who fled from Nazi Germany. At first, the kibbutz was called Ma'ayan.[2] It was established on land which had traditionally belonged to the Palestinian village of Kabera.[3]
In 1945, the name Zvi was added in honor of Zvi Frank, a Zionist activist and one of the heads of the Jewish Colonization Association which purchased the kibbutz lands.[2]
The kibbutz manufactures optical devices and components for high-tech and advanced weapon systems.[4]