Princeton was founded in 1813 by land speculator Frederick Rapp, and named by Judge William Prince in honor of the Revolutionary War Battle of Princeton, New Jersey.

As the county seat of Gibson County, Princeton is strategically located in southwestern Indiana, about 27 miles north of Evansville, within the fertile Wabash Valley.

In its early years, Princeton's economy was primarily agrarian, supported by rich farmlands, with timber and coal mining later emerging as significant industries in the late 19th and early 20th centuries.

The city's growth was significantly bolstered by its development as a railroad hub in the mid-19th century, with the Chicago and Eastern Illinois Railroad and the Southern Railway establishing lines through the area.

A major turning point in Princeton's modern economic history was the establishment of Toyota Motor Manufacturing Indiana (TMMI) in 1996, which became the region's largest employer, producing SUVs and minivans.

Princeton has experienced steady population growth over the past few decades, particularly following the arrival of Toyota, with its population hovering around 8,000 to 9,000 residents in recent years.

A prominent landmark is the Romanesque Revival Gibson County Courthouse, built in 1887, which stands as an architectural centerpiece in the city's historic downtown square.

The historic Princess Theatre, built in 1927, serves as a cultural cornerstone, hosting community events, live performances, and movie screenings.

Princeton is home to the annual Gibson County Fair, one of Indiana's oldest county fairs, which features agricultural exhibits, carnival rides, and live entertainment every summer.

The Patoka River flows near Princeton, contributing to the area's fertile soil and natural beauty, and offering opportunities for outdoor recreation in its floodplains.

The city is served by the North Gibson School Corporation, with Princeton Community High School being the primary secondary educational institution, contributing to the local community's intellectual development.

Judge William Prince, for whom the city is named, was a significant figure in Indiana's early statehood, serving as a territorial judge and a member of the Indiana General Assembly.

Princeton, Indiana, does not host any UNESCO World Heritage Sites, a common characteristic of most smaller American municipalities.

While automotive manufacturing dominates, Princeton's economy is also supported by a robust agricultural sector, light manufacturing, and a growing service industry, providing diversification.

Situated within the Wabash Lowlands physiographic region, Princeton benefits from flat to gently rolling terrain, ideal for both agricultural pursuits and industrial development.