The name Salem traces its origins to the Hebrew Shalom, meaning "peace." It has been in use since ancient times in the Middle East and Mediterranean regions. The earliest recorded instance of the name is found in the Bible, where Salem is mentioned as an early name for Jerusalem.

In the Old Testament, Salem is referenced in Genesis 14:18 as the city ruled by Melchizedek, the king of Salem and a priest of God Most High. This biblical association has given the name a religious significance in Judaism, Christianity, and Islam. Salem is also mentioned in Psalm 76:2, where it is described as the location of God's tabernacle.

The name gained popularity during the medieval period, particularly among Jewish and Arabic communities. One notable bearer of the name was Salem Ibn Abdallah, a renowned 9th-century Islamic mathematician and astronomer from Baghdad. In the 11th century, a Spanish Jewish philosopher and poet, Solomon Ibn Gabirol, also went by the name Salem.

During the Renaissance, the name was adopted by some European Christians, often as a variant of the name Solomon or as a tribute to the biblical city of Jerusalem. One of the earliest recorded Europeans with this name was Salem Andreae, a 16th-century German philosopher and theologian.

In the 17th century, the Puritan settlers of New England founded the town of Salem, Massachusetts, which derived its name from the Hebrew word Shalom, reflecting their desire for a peaceful settlement. This connection to the founding of Salem, Massachusetts, further contributed to the name's popularity in the English-speaking world.

Notable historical figures named Salem include Salem Poor, an African American soldier who fought in the American Revolutionary War, and Salem Witch Trials judge Samuel Sewall, who later expressed regret for his role in the infamous trials.