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A charm bracelet is an item of jewelry worn around the wrist. It carries personal "charms": decorative pendants or trinkets which signify important things in the wearer's life.

The wearing of charms may have begun as a form of amulet to ward off evil spirits or bad luck.

During the pre-historic period, jewelry charms would be made from shells, animal-bones and clay.

For instance, there is evidence from Africa that shells where used for adornments around 75,000 years ago. In Germany intricately carved mammoth tusk charms have been found from around 30,000 years ago. In ancient Egypt charms were used for identification and as symbols of faith and luck. Charms also served to identify an individual to the gods in the afterlife. During the Roman Empire, Christians would use tiny fish charms hidden in their clothing to identify themselves to other Christians. Jewish scholars of the same period would write tiny passages of Jewish law and put them in amulets round their necks to keep the law close to their heart at all times. Medieval knights wore charms for protection in battle. Charms also were worn in the Dark Ages to represent family origin, religious and political convictions.

Charm bracelets have been the subject of several waves of trends.

For example, Queen Victoria wore charm bracelets that started a fashion among the European noble classes. Soldiers returning home after World War II brought home trinkets made by craftsmen local to the area where they were fighting to give to loved ones. American teenagers in the 1950s and early 1960s collected charms to record the events in their lives. Although interest and production waned through the latter part of the 20th century, there was a resurgence of popularity after 2000 and collectors eagerly sought out vintage charms. Inspired by to the movie Pirates of the Caribbean, bracelets with little charms of swords, crosses and skulls were introduced as a fashion trend during Winter 2006.

Since 2002, a new trend for European charm bracelets has emerged in both Europe and North America. These modular bracelets consist of a chain onto which different beads or 'charms' can be put. The charms are made from gold, silver or Murano glass and are interchangeable to allow the wearer to create their own look.

They appeal to diverse customer base due to the wide range of beads available. The silver beads available start from approx. £15 ($30 US) and the range extends up to gold and diamond beads at £300 - £400. The beads can also be worn on necklaces and matching rings and earring are also available to make a complete set.

Originally introduced by Danish jewellery company Trollbeads in 1976, this style of bracelet grew in popularity and today there are many brands available. In the UK the most successful brand of European charm bracelet is Pandora and Lovelinks, though Biagi, Zable, Reflections by SimStars, Chamilia and Trollbeads are also very popular in the US.

This current fashion for modular jewelry builds on the success that 'Add A Bead' jewelry had in the 80s.