[2] The main village of the town, where 338 people resided at the 2020 census, is defined as the Bennington census-designated place (CDP) and is located on the Contoocook River at the intersection of New Hampshire routes 31 and 47.

Situated in an area once called "Society Land", the town was formed from parts of Deering, Francestown, Greenfield and Hancock.

The Vermont town in turn derived its name from New Hampshire governor Benning Wentworth.

Located at the Great Falls of the Contoocook River, which drop 70 feet (21 m) over 1.2 miles (1.9 km), Bennington provided water power for mills.

A factory with paper-making machinery was established in 1835, located at or near the site of the present-day Monadnock Paper Mill.

[1] Bennington is drained by the north-flowing Contoocook River, which forms Powder Mill Pond on the southern boundary.

The highest point in Bennington is 2,020 feet (620 m) above sea level on Crotched Mountain, whose 2,066-foot (630 m) summit lies just east in Francestown.

It is bordered by the towns of Deering to the northeast, Francestown to the east, Greenfield to the south, Hancock to the southwest, and Antrim to the west and north.