It is a wheat growing area and named after the biblical Bethlehem, from Hebrew: בֵּית לֶחֶם ("Beit Lechem"), meaning "house of bread".

[2] The city lies at an altitude of 1,700 metres (5,600 ft), which contributes to its cool climate, with frosty winters and mild summers.

The city is strategically situated in the heart of the picturesque north-eastern Free State and originally developed as a service centre.

In 1900, during the Second Boer War, Bethlehem temporarily served as the seat of the Orange Free State government.

It has three private hospitals and three star Frontier hotel, Casino and Entertainment Centre located near the Dihlabeng Mall and Bethlehem Aerodrome.

Bethlehem hosts several industries including Coca-Cola, South African Breweries and Nestlé, as well as petroleum and engineering companies.

The crest was three golden ears of wheat with blue stalks and leaves, tied together with a red band; the motto was Conjuncti prosperamus.