Praseodymium was discovered by Carl F. Auer von Welsbach, a German chemist, in 1885. He separated praseodymium, as well as the element neodymium, from a material known as didymium. Today, praseodymium is primarily obtained through an ion exchange process from monazite sand ((Ce, La, Th, Nd, Y)PO₄), a material rich in rare earth elements.

Praseodymium's primary use is as an alloying agent with magnesium to create high-strength metals that are used in aircraft engines. Praseodymium also makes up about 5% of Misch metal, a material that is used to make flints for lighters. Praseodymium forms the core of carbon arc lights which are used in the motion picture industry for studio lighting and projector lights. Praseodymium is added to fiber optic cables as a doping agent where it is used as a signal amplifier. Praseodymium salts are used to give glasses and enamels a yellow color. Praseodymium is also a component of didymium glass, which is used to make certain types of welder's and glass blower's goggles.