The first references to the presence of Jews in Jaraczewo date back to the 18th century.

They were probably brought to the town by its owners, the Jaraczewski family. Jews were granted a parcel outside the town, near the route towards Borek, for the construction of a synagogue and an additional plot for a cemetery (50 metres to the west from the synagogue).

The size of the local Jewish community reached its peak in the 19th century, with 147 Jews living in Jaraczewo in 1871. The synagogue was erected ca. 1882. The number of Jews living in the town started to fall due to migration to larger cities, America, United Kingdom, and Australia. In 1921, there were only 21 Jews left in the town, with the total number of residents amounting to 855 (2.5%). There is no information regarding local Jews during the Holocaust; it is possible that the community had already disappeared in the interwar period.