Bilateral relations between Yemen and the Kingdom of the Netherlands date back to the seventeenth century AD when the Dutch East India Company opened an office in the port city of Al-Mukha in 1616. The company exported coffee and spices to Europe and Indonesia. Later it reached the Caribbean and South America.

In the modern era, the Kingdom of Mutawakkala of Yemen and the Kingdom of the Netherlands signed a Treaty of Friendship in Sana'a in 1933, which ceased to exist in 1947. In the early seventies diplomatic relations were re-established with both North and South Yemen. Since the establishment of the Yemeni unity in 1990, six Yemeni ambassadors have been posted to the Netherlands the latest being  Mrs. Sahar Ghanem (2017 - present).

The bilateral relations between the Republic of Yemen and the Kingdom of the Netherlands are close and distinct. Since the signing of the Development Cooperation Agreement on 3 October 1978, the Netherlands is one of the most important European donor countries to Yemen and has provided technical support to Yemen in the areas of health, reproductive health, education, water, rule of law. Currently, due to the humanitarian crisis in Yemen, most Dutch aid has been concentrated in relief areas. The Netherlands has pledged a total of 13.2 million Euro in February 2019.

Since the inauguration of diplomatic relations between the Republic of Yemen and the Kingdom of the Netherlands, many Yemeni and Dutch delegations have exchanged a number of official visits, most notably the visit of former President Ali Abdullah Saleh to the Netherlands and the visit of the Deputy Prime Minister and Dutch Foreign Minister to Yemen.