The village grew out of two smaller settlements (called Dairsiemuir and Osnaburgh), and developed principally around the industry of weaving.
The village may have derived its name of Osnaburgh from weaving osnaburg, a coarse linen or cotton, originally imported from Osnabrück in Germany.
[1] Dairsie Bridge, 1 mile (1.6 km) south of the village, dates from the early sixteenth century, although it has been modified since.
[2] Nearby Dairsie Castle (now restored) dates from the early seventeenth century, and was briefly the residence of John Spottiswoode (1565-1639), Archbishop of St Andrews.
Local businesses include a small Village Shop and Post Office, a Petrol Station and Garage (also selling second hand vehicles) and The Dairsie Inn, recently trading as Rumbledethumps Restaurant but currently closed.