The area fell within the domains of the O’Reilly clan until the Plantation of Ulster started in the early 17th Century which resulted in the O'Reillys having their lands confiscated.

The lands around Butlersbridge were given to an English tenant called Sir Stephen Butler, after whom the town is named.

[3] Butlersbridge's parish church is St Aidan's which was designed by the architect William Hague Jr. (1836–1899).

[4] Annagh Lake is near Butlersbridge and forms part of the drainage system of the River Erne.

In 1977, the owners of the Derragarra Inn in Butlersbridge created a folk village as a tourist attraction.