Once known as "Hell Town" for all the wild and reckless spirits it attracted, Front Royal was a frontier stop on the way to eastern markets. The present name is supposed to have originated in the command, "Front the royal oak," given by an English officer to his untrained mountain militia recruits.

Belle Boyd, the Confederate spy, worked here extracting military secrets from Union officers. It is said that she invited General Nathaniel Banks, whose regiment was occupying the town, and his officers to a ball once. Later she raced on horseback to tell General Jackson what she had learned. The next morning (May 23, 1862), the Confederates attacked and captured nearly all of the Union troops, providing Jackson one of his early victories in the famous Valley Campaign.

Front Royal was a quiet little village until the entrance to Shenandoah National Park and the beginning of Skyline Drive opened in 1935, just 1 mile to the south. With millions of motorists passing through every year, the town has grown rapidly. The production of automotive finishes, limestone, and cement contributes to the town's economy, but the tourism industry remains one of its largest.