The Borough of Montgomery was incorporated by decree of the Court of Lycoming County on March 21, 1887 upon land taken from Clinton Township, which in turn was previously taken from Washington Township.

The first settler, Cornelius Lowe, arrived in Clinton Township in 1771 and escaped the area after some problems with the Indians. William Mackey settled successfully in 1783, and his home site is now the home of the American Legion Bower-Decker Post 251 on Broad Street.

The Borough was named after a prominent farmer, Robert Montgomery, who donated some of his land for the Montgomery Railroad Station.

Early industry consisted of grist mills, saw mills and wood carding mills, but Montgomery is best known for its past furniture manufacturers.

Montgomery is served by the Tri-city bus route connecting Montgomery, Muncy and Hughesville through the River Valley Transit (formally City Bus). Schedules are available at the Borough Office.