A windmill is a machine operated by the force of wind acting on vanes or sails to mill grain (gristmills), pump water, generate electricity, or drive other machinery. Windmills were used throughout the high medieval and early modern periods; the horizontal or panemone windmill first appeared in Persia during the 9th century, and the vertical windmill first appeared in northwestern Europe in the 12th century. Regarded as an icon of Dutch culture, there are approximately 1,000 windmills in the Netherlands today.

Wind-powered machines have been known earlier, the Babylonian emperor Hammurabi had used wind mill power for his irrigation project in Mesopotamia in the 17th century BC.

Later, Hero of Alexandria (Heron) in first-century Roman Egypt described what appears to be a wind-driven wheel to power a machine. His description of a wind-powered organ is not a practical windmill but was either an early wind-powered toy or a design concept for a wind-powered machine that may or may not have been a working device, as there is ambiguity in the text and issues with the design. Another early example of a wind-driven wheel was the prayer wheel, which is believed to have been first used in Tibet and China, though there is uncertainty over the date of its first appearance, which could have been either c. 400, the 7th century, or after the 9th century.

One of the earliest recorded working windmill designs found was invented sometime around 700–900 AD in Persia. This design was the panemone, with vertical lightweight wooden sails attached by horizontal struts to a central vertical shaft. It was first built to pump water and subsequently modified to grind grain as well.

The first practical windmills were panemone windmills, using sails that rotated in a horizontal plane, around a vertical axis. Made of six to 12 sails covered in reed matting or cloth material, these windmills were used to grind grain or draw up water. A medieval account reports that windmill technology was used in Persia and the Middle East during the reign of Rashidun caliph Umar ibn al-Khattab (r. 634–644), based on the caliph's conversation with a Persian builder slave. The authenticity of part of the anecdote involving the caliph Umar is questioned because it was recorded only in the 10th century. The Persian geographer Estakhri reported windmills being operated in Khorasan (Eastern Iran and Western Afghanistan) already in the 9th century. Such windmills were in widespread use across the Middle East and Central Asia and later spread to Europe, China, and India from there. By the 11th century, the vertical-axle windmill had reached parts of Southern Europe, including the Iberian Peninsula (via Al-Andalus) and the Aegean Sea (in the Balkans). A similar type of horizontal windmill with rectangular blades, used for irrigation, can also be found in thirteenth-century China (during the Jurchen Jin dynasty in the north), introduced by the travels of Yelü Chucai to Turkestan in 1219.

Vertical-axle windmills were built, in small numbers, in Europe during the 18th and nineteenth centuries, for example Fowler's Mill at Battersea in London, and Hooper's Mill at Margate in Kent. These early modern examples seem not to have been directly influenced by the vertical-axle windmills of the medieval period, but to have been independent inventions by 18th-century engineers.

The horizontal-axis or vertical windmill (so called due to the plane of the movement of its sails) is a development of the 12th century, first used in northwestern Europe, in the triangle of northern France, eastern England and Flanders. It is unclear whether the vertical windmill was influenced by the introduction of the horizontal windmill from Persia-Middle East to Southern Europe in the preceding century.

The earliest certain reference to a windmill in Northern Europe (assumed to have been of the vertical type) dates from 1185, in the former village of Weedley in Yorkshire which was located at the southern tip of the Wold overlooking the Humber Estuary. Several earlier, but less certainly dated, 12th-century European sources referring to windmills have also been found. These earliest mills were used to grind cereals.