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Quakertown was originally settled by the Religious Society of Friends, or Quakers. The settlement was not officially known as Quakertown until its first post office opened in 1803.

During the American Revolution, the Liberty Bell was hidden in Quakertown for one night to protect it from the British. On September 18, 1777, during the American Revolutionary War, a convoy of wagons carrying the Liberty Bell from Philadelphia to Allentown, under the command of Col. Thomas Polk of Charlotte, North Carolina, stopped in Quakertown. The Liberty Bell was stored overnight behind the home of Evan Foulke (1237 West Broad Street), and the entourage stayed at the Red Lion Inn. A replica of the Liberty Bell can be found at State Bell House where it was hidden.

The American Civil War along with national economic expansion changed Quakertown from a tiny village to a commercial manufacturing center. In the nineteenth century, local industrial establishments included cigar and cigar box factories, silk mills, harness factories, and stove foundries. Until 1969, Quakertown generated its own electrical power. The population of Quakertown in 1900 was 3,014; it rose to 3,801 in 1910. By 1940, the population had reached 5,150 people. At the 2010 census, the borough's population was 8,979.

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