The town of Berlin lies over land that was originally the 300-acre Burley Plantation, patented by William Tomkins in 1677.

Berlin developed in the early-19th century at this crossroads, where a tavern, blacksmith shop, and livery were among the first established businesses in the new town.

Regional tradition asserts that the pronunciation of the town's name, "Burl'in" with emphasis on the first syllable, stems from the "Burley Inn", the early tavern that stood at the crossroads of the Philadelphia Post and Sinepuxent Roads.

Within the next decade, the arrival of the Delaware, Maryland, and Virginia Railroad made Berlin into a commercial center for upper Worcester County.

After a fire in 1895 leveled a significant portion of the central commercial district, Victorian structures displaying elements of Queen Anne, Italianate, and Second Empire styles were erected along Main Street.

The rise of nearby Ocean City as a tourist destination in the early-twentieth century also aided Berlin's economy by making the town a convenient rest stop.

[3] Since the late 1980s, the town has undergone considerable revitalization of its historic downtown commercial district and adjacent residential areas.

Berlin has also been designated as a "Main Street Community" by the State of Maryland in recognition of its revitalization progress.

In addition to the Berlin Commercial District, the Buckingham Archeological Site, Burley Manor, Caleb's Discovery, Fassitt House, Genesar, Henry's Grove, Merry Sherwood and Williams Grove are listed on the National Register of Historic Places.

Berlin experiences a Humid subtropical climate (cfa) with all year precipation, warm to hot summers and snowy, wet winters.

US 113 bypasses the town to the east on Worcester Highway and heads north to Selbyville, Delaware and south toward Snow Hill and Pocomoke City.

Maryland Route 818 runs north-south through the center of Berlin on Main Street and connects to US 113 on both ends of town.

Maryland Route 346 passes through the northern part of Berlin on Old Ocean City Boulevard, connecting to US 50 east and west of the town.

[16][17] On September 19, 2006, residents of Berlin voted in favor of selling the town's electric department to Choptank Electric Cooperative, a move supported by the mayor and town council because of the utility's debt and high rates but opposed by the Berlin Utility Commission because of the feared loss of revenue.