The first settlement here occurred in 1762; by 1815 the community had grown so much that it sought its own incorporation. Troy is a small township made up of parts of Marlborough, Fitzwilliam, Swanzey and Richmond.

Troy Mills Inc., which started making horse blankets in the mid-1800s, served as the backbone of the town’s economy for nearly 100 years. It declared bankruptcy in late 2001 and ceased operations in 2002. The giant mill complex on Monadnock Street now houses two smaller spinoffs of Troy Mills, Knowlton Nonwovens and Cosmopolitan Textiles. Woodenware, pottery and fine building stone were also once the products of Troy industries.

The town hall, built in 1813-1814 near the rail-fenced common, was originally the village meeting house. Troy enjoys some superb vistas of nearby Mount Monadnock.