KF Shkëndija was formed in 1979 by Albanians from Tetovo. The purpose of forming the club was so that the Albanians throughout Yugoslavia could unite in supporting a club for Albanians. FK Shkëndija was frowned upon by Yugoslav officials as it was thought the club would awaken nationalist feeling among the Albanians of Yugoslavia. Starting at the lowest division in Yugoslavia, Shkëndija won the league in the 1979–1980 season, resulting in Shkëndija being promoted into the Third division. After claiming the third division title in the 1980–1981 season, Shkëndija was then again promoted into the Second division. However, as the popularity of the club began to increase among the Albanian population of Yugoslavia, the ruling communist government members disbanded the club, worried that the club would start a nationalistic revival in Yugoslavia.