Castel Goffredo borders the following municipalities: Castiglione delle Stiviere, Medole, Ceresara, Casaloldo, Asola, Acquafredda, Carpenedolo.

Founded in a region inhabited from the Bronze Age, Castel Goffredo belonged to the count-bishops of Brescia from the ninth century to 1115, when the commune was established.

The eldest, Alfonso, who gained Castel Goffredo, was assassinated in 1592 by members of the household of his nephew Rodolfo Gonzaga of Castiglione, brother of the saintly Aloysius Gonzaga; Alfonso, publicly tried for murder but acquitted, was murdered in turn, 31 January 1593, occasioning a popular uprising that re-established the Magnifica Comunità.

The original source material was wool, but in the 1700s, the leading family of the town, the Acerbi, introduced silk-worm farming and silk-production became an important sector.

The production of cotton and silk was revolutionised by the industrial processes of the twentieth century, which also saw the introduction of the new synthetics into the business.