The growth of traffic in and around Moscow in the 1950s made the city planners realize Russia's largest metropolis needed a bypass to redirect incoming traffic from major roads that run through the city. Opened in 1961, the MKAD had four lanes of asphalt running 108.9 kilometers along the city borders. Although not yet a freeway, it featured interchanges at major junctions, very few traffic lights, and a speed limit of 100 km/h (62 mph).

For a long time, the MKAD served as the administrative boundary of Moscow city until in the 1980s Moscow started annexing territory outside the beltway. In December 2002 Bulvar Dmitriya Donskogo became the first Moscow Metro station that opened beyond the limits of MKAD.

In 1995–1999, the road was widened from the initial four to ten lanes, while all intersections became grade-separated, bridges were built to accommodate pedestrians, traffic lights were removed, and a solid concrete barrier was installed in the median. In 2001, all slow-moving vehicles were banned from entering the MKAD, and the renovated road received a freeway designation from the mayor's office.

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