Center Sandwich began as the site of an early gristmill, erected in 1768 by Daniel Beede, which was followed in 1780 by a sawmill, both on the banks of the Red Hill River.

Most of the village's development and growth occurred in the years before the Civil War, resulting in residential and civic buildings that are largely vernacular Federal and Greek Revival in style.

Because no railroads were built to serve the area, Center Sandwich declined in importance after the Civil War.

The oldest surviving building in the village is the 1792 Baptist church, originally Federal in style, but later given Greek Revival features.

[4] The eastern edge of the CDP follows the Red Hill River, a south-flowing tributary of Lake Winnipesaukee.