The town was built around a waterfall in the centre of town. It was first incorporated in 1875. It was named after a book, Bracebridge Hall by Washington Irving, that the postmaster in charge of naming towns was reading at the time.
The town is a centre of tourism for the Muskoka area, and is home to several historical buildings, such as the Inn at the Falls, Woodchester Villa, and the Silver Bridge, which joins Manitoba Street with Ecclestone Drive. The Silver Bridge was repaired in 2002.
Nipissing University has a satellite campus in the town.
People associated with Bracebridge