Bennington was formed in 1842 from portions of Deering, Francestown, Greenfield and Hancock. It was named for the New Hampshire royal governor, Benning Wentworth.

There is a long history of manufacturing here, where once five dams on the Contoocook River powered a variety of industries. Cutlery, woodenware and especially paper have been made here. Monadnock Paper Mills has carried on the manufacture of paper as this town’s major product for more than a century.