Native peoples continued to pass through or reside in the Carberry area and did so until the late 1870s when European settlement began to affect the landscape and game resources.

[3] As is the case with most towns in the southern districts of Western Canada, Carberry owes its origin mainly to the Canadian Pacific Railway.

In 1882, the railway established a station at De Winton, a now defunct town-site about 3.5 kilometres (2.2 mi) east of Carberry's present site.

Several railway officials covertly purchased much of De Winton's town-site property, hoping for large personal profits as a town grew around this new station.

On June 15, 2023, a serious vehicle collision between a handi-transit bus and a semi-truck occurred on the Trans Canada Highway near Carberry, killing 17 people and injuring 8 others.

[5] The soldiers and support staff stationed at Camp Hughes naturally maintained very close social and economic ties with the town of Carberry which was only a short distance away.

During World War I, more than 38,000 troops of the Canadian Expeditionary Force trained at the camp, giving it the largest population in the province of Manitoba outside of the capital city, Winnipeg.

[9] Carberry's population increased by 4.1% between 2011 and 2016,[10] due in part to the community's strong, stable economy, along with other factors including its location near major transportation routes and the city of Brandon.

Carberry's proximity to Spruce Woods Provincial Park and the many unique recreational activities in the area make it a popular tourist destination.

Via Rail passenger service is not offered in Carberry, however trains on the Toronto to Vancouver "The Canadian" Line can be accessed at the Rivers railway station located approximately 80 kilometres (50 mi) northwest of the community, while the Winnipeg – Churchill train as well as The Canadian can be accessed at the Portage la Prairie railway station located approximately 80 kilometres east of the community.