The cemetery was situated on a hill at Skalbmierska Street (behind the house number 9). It was founded in the 18th century. It had an area of ​​5 ha. Until World War II, the cemetery was fenced with a wall, and on its premises there was a funeral home and a gravedigger's house. It was destroyed during the war. After the war, the tombstones were used to build the road. Currently, no matzeva has survived on the area of ​​2 ha. The area is devastated, covered with trees and shrubs. During World War II, a mass execution took place in the cemetery. The Germans shot 1,500 Jews from Działoszyce and its vicinity. The victims of the murder were buried in common, mass graves. In 2009, plaques commemorating the Jews who lived and died in Działoszyce before the war were hung on the trees in the cemetery.

In 1989, on the site of the mass grave, on the 50th anniversary of the outbreak of World War II, a monument commemorating the victims of the murder was erected, as well as a mausoleum commissioned by Jews living in Israel.