It is seat of a municipal association with Egg an der Günz, Kettershausen, Kirchhaslach, Oberschönegg and Winterrieden.

The view of Babenhausen is dominated by the Fugger Castle, a local attraction with a museum, and the Sankt Andreas Church.

It is the seat of the Fuggers, a merchant family from Augsburg which played an important role during the Middle Ages and the Renaissance.

Municipal rights can be traced back to 1315, and in 1337, Emperor Ludwig IV awarded the city with the town charter of Ulm.

Babenhausen was connected to the railway in 1894 (Illertalbahn), but local public transportation on this route was discontinued in 1964.