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Rangers were formed by four founders – brothers Moses McNeil and Peter McNeil, Peter Campbell and William McBeath – who met at West End Park (now known as Kelvingrove Park) in March 1872. Rangers' first match, in May that year, was a goalless friendly draw with Callander on Glasgow Green. David Hill was also a founder member.

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In 1873, the club held its first annual meeting and staff were elected. By 1876 Rangers had its first international player, with Moses McNeil representing Scotland in a match against Wales. In 1877 Rangers reached the Scottish Cup final. After drawing the first game, Rangers refused to turn up for the replay and the cup was awarded to Vale of Leven. Rangers won the Glasgow Merchants' Charity Cup the following year against Vale of Leven 2–1, their first major cup. The first-ever Old Firm match took place in 1888, the year of Celtic's establishment. Rangers lost 5–2 in a friendly to a team composed largely of guest players from Hibernian.

The 1890–91 season saw the inception of the Scottish Football League, and Rangers, by then playing at the first Ibrox Stadium, were one of ten original members. The club's first-ever league match, on 16 August 1890, resulted in a 5–2 victory over Heart of Midlothian. After finishing joint-top with Dumbarton, a play-off held at Cathkin Park finished 2–2 and the title was shared for the only time in its history. Rangers' first-ever Scottish Cup win came in 1894 after a 3–1 final victory over rivals Celtic. By the start of the 20th century, Rangers had won two league titles and three Scottish Cups. During William Wilton's time as match secretary and then team manager, Rangers won 10 league titles.

Taking over as manager after William Wilton's tragic death in 1920, Bill Struth was Rangers' most successful manager, guiding the club to 14 league titles before the onset of the Second World War. On 2 January 1939 a British league attendance record was broken as 118,567 fans turned out to watch Rangers beat Celtic in the traditional New Year's Day Old Firm match.

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Leading the club for 34 years until 1954, Struth won more trophies than any manager in Scottish Football history, amassing 18 league championships, 10 Scottish Cups, two League Cups, seven war-time championships, 19 Glasgow Cups, 17 Glasgow Merchant Charity Cups and other war-time honours. During the wartime regional league setup, Rangers achieved their highest score against old firm rivals Celtic with an 8–1 win in the Southern Football League.

Scot Symon continued Struth's success, winning six league championships, five Scottish Cups and four League Cups, becoming the second manager to win the domestic treble in 1963–64 season, the era of 'Slim' Jim Baxter, one of the club's greatest players. Rangers also lost by their biggest Old Firm margin of 7–1.

Rangers reached the semi-finals of the European Cup in 1960, losing to German club Eintracht Frankfurt by a record aggregate 12–4 for a Scottish team. In 1961 Rangers became the first British team to reach a European final when they contested the Cup Winners' Cup final against Italian side Fiorentina, only to lose 4–1 on aggregate. Rangers lost again in the final of the same competition in 1967, by a single goal after extra time to Bayern Munich.

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