In 1874 the North-West Mounted Police (NWMP), as part of their March West, travelled through the area just south of present-day Carlyle en route to what is now Southern Alberta to deal with the Cypress Hills Massacre.

The Canadian National Railway (CNR) laid steel into the townsite on 28 October 1909, and on 7 June 1910, the first passenger train went through town.

The former CN Carlyle railway station was sold in 1976 and then moved to its current location and now houses the Rusty Relics Museum and tourist Information Centre.

[5] The three most prominent industries in the Carlyle area are agriculture, the oil and gas sector, and tourism.

Tourism sees its biggest impact to local businesses that cater to tourists who come to south-eastern Saskatchewan to visit nearby attractions, such as Moose Mountain Provincial Park.

[10] Being the largest town in the area, Carlyle has a wide variety of businesses that not only cater to local residents and tourists, but to people from neighbouring communities as well.

[11] Businesses such as hotels, grocery stores, banks, a Credit Union, gas stations, several restaurants, including fast food chains, a department store, building supply outlets, and several mom-and-pop specialty shops provide an ample variety of services.

[12] Every September Carlyle hosts the annual Home Spun Craft Show that features over 70 venders from all over Canada.

[13] Agriculture is what initially brought settlers to Carlyle in the late 1800s and it continues to play an important role in the local economy.

While Carlyle's grain elevator is long gone, a vibrant trucking industry, farm equipment sales and repair, and other agriculture related businesses continue to thrive.

[15] Pump jacks, oil batteries, and pipeline terminals are found all around the Carlyle area.

Construction of the current fire hall was completed in 2020 and the official opening ceremony was on 7 December 2020.

About 30 kilometres to the north-east is Cannington Manor Provincial Park, which is a IUCN protected area category III and on the Canadian Register of Historic Places.

In town, there's a 9-hole golf course,[29] Carlyle Sports Arena (CSA), an outdoor swimming pool,[30] curling with four sheets of ice,[31] a motocross track, and a playground.

Lions Park in Carlyle has a soccer pitch, six ball diamonds, the aforementioned swimming pool, camping, and walking paths.

The Prairie Dog Drive-in Theatre, one of five left in Saskatchewan,[33] is located about three kilometres north of town along Highway 9.

The only other big screen in town is a one-screen theatre on the second floor of the Carlyle Memorial Hall in downtown.

[34] On the first weekend of December each year since 2002, the town holds a Dickens Village Festival, which features a Christmas parade, horse carriage rides, and many of the businesses and people put on a Charles Dickens-19th century theme.

[37] The event features a Lion’s Pancake Breakfast, live shows with music and street dancing, beer gardens, food venders, a kids zone that includes a petting zoo, a parade, and a farmer's market.