The Bahraini Dinar was introduced as a currency in 1965, six years before Bahrain gained full independence; it replaced the Gulf Rupee at a rate of 10 rupees = 1 dinar. The Dinar is subdivided into 1,000 Fils (the singular form is also Fils); hence it is usually represented with three decimal places denoting the Fils. The 25 Fils (0.025 Dinar) coin is currently the third smallest one in circulation after the 10 Fils and 5 Fils, because the 1 Fils coin was only issued in 1965 and 1966 and it no longer circulates.
The 1965 issue (and a 1983 commemorative silver) were smaller in diameter, while later coins were made larger. Ever since their first issue, 25 fils coins have been made from cupronickel (copper-nickel allow). Some silver 25 fils coins have also been issued as non-circulating legal tender.