With the establishment of the Daegu-Gyeongbuk Free Economic Zone, Daegu currently focuses on fostering fashion and high-tech industries.

Archaeological investigations in the Greater Daegu area have revealed a large number of settlements and burials of the prehistoric Mumun pottery period (around 1500–300 BC).

[10] The Dongcheon-dong site dates back to the Middle Mumun (around 850–550 BC) and contains the remains of many prehistoric pit-houses and agricultural fields.

Silla succeeded in unifying the Korean peninsula by defeating the other kingdoms of Baekje and Goguryeo in the late seventh century, partly due to assistance from China's Tang dynasty.

[11] This initiative is known only through a single line in the Samguk sagi, a most valued historical record of ancient Korea by Koryeo dynasty historian Kim Bu-sik, but it is presumed to indicate both an attempt by the Silla king to reinforce royal authority and the entrenched resistance of the Gyeongju political elites that was the likely cause of the move's failure.

In 927, northern Daegu was the site of the Battle of Gong Mountain between the forces of Goryeo under Wang Kŏn and those of Later Baekje under Kyŏn Hwŏn.

In this battle, the forces of Goryeo were crushed and Wang Kŏn himself was saved only by the heroic deed of his general Sin Sung-gyŏm.

However, the atrocities of the Later Baekje forces at this time apparently changed local sympathizers to favor Wang Kŏn, who later became the king of Goryeo.

Traders from Japan, who were not permitted to leave the Nakdong River valley, hired messengers to visit the market on their behalf.

In 1895, Daegu became the site of one of the country's first modern post offices, as a part of the 'Gab-o' reforms introduced in the aftermath of the First Sino-Japanese war.

[16] Beginning in the late 1890s, increasing numbers of foreign merchants and workers started to visit Daegu, which emerged as a modern transportation center of the newly constructed Gyeongbu Line main railroad connecting Seoul and Busan.

[17] As the demise of the Korean Empire approached in 1907, local citizens led by Seo Sang-don organized the National Debt Repayment Movement.

In the second half of the 20th century, the city underwent explosive growth, and the population has increased more than tenfold since the end of the Korean War.

In December 2020, construction of a mosque in Daehyeon-dong for a Muslim community of 80-150 members comprising mainly staff and students of a local university, resulted in opposition from nearby residents who complained about the change in land use without prior consultation.

This suspension was later judged by The National Human Rights Commission of Korea (NHRCK) to be based on discrimination and prejudice against Muslims.

Insulting and offensive messages, considered by the NHRCK as akin to hate-speech, and the heads of pigs displayed within glass-fronted refrigerators, were subsequently left near the mosque construction site; the identity and precise motive of the culprits remain uncertain.

[27] Due to proximity to the mosque and its being seen as an intentional insult to Islam and the Muslim community, local residents were strongly criticized for holding a social barbeque/picnic in their neighbourhood in which pork (the most frequently eaten red meat in South Korea) was served.

[30] In 2014, high temperatures led to the emergence of a new term called Daefrica (대프리카, Daegu+Africa) starting with the internet community, and has been used in the media, broadcasting, etc.

Many companies such as Daegu Bank, Korea Delphi, Hwasung corp., and TaeguTec are situated in this city, and Samsung and Kolon were founded here.

Recently, the local government has begun focusing on working towards economic revival and concentrating on improving the city's fashion industry.

Textile complexes, textile-fashion institutions, an international school, fashion malls as well as residential areas plan to be developed in the district.

In the urban area, the Joseon period's administrative or educational buildings including Gyeongsang-gamyeong (경상감영; 慶尙監營) and Daegu-hyanggyo (대구향교; 大邱鄕校) also remain.

Western style modern architecture like Gyesan Cathedral and the old building of Jeil Church are preserved across the urban area.

Yangnyeongsi (약령시; 藥令市) in Namseongno (often called Yakjeon-golmok) is the oldest market for Korean medicinal herbs in the country with a history of 350 years.

The historic city of Gyeongju, North Gyeongsang Province, the capital of the ancient kingdom of Silla is located east of Daegu.

The area around the Seongseo Industrial Complex subway station in Dalseo District is a concentration of many amusement spots, and young people easily can be seen around Kyungpook National University in Buk-gu.

The Dongsan Hospital (attached to Keimyung University), founded as Jejungwon in 1899, is one of the oldest western style medical clinics in Korea.

The school's motto is "To raise children who are upright, wise, and strong", and its emblem and flower are the magnolia and pine tree, respectively.

Daegu Sindang Elementary School has a history of excellence in sports, music and academics, and has won numerous awards in these fields.

In 2020, a group of students from Daegu Sindang Elementary School won first place in the Korean National Championship of the FIRST LEGO League (FLL) robotics competition.