Debre Birhan was founded by Emperor Zara Yaqob, in response to a miraculous light that was seen in the sky at the time.

[6] After he had defeated Lebna Dengel at the Battle of Amba Sel, Ahmad mustered his troops twice in Debre Birhan before leading them on campaigns deeper into Ethiopian territory.

[7] The village regained importance in the reign of Asfaw Wossen (1775–1808), Meridazmach of Shewa, who built a palace there, and divided his time amongst this town, Ankober and Angolalla.

[8] The succeeding Meridazmaches prized Debre Birhan as a hunting lodge for its surrounding plains, and used it as a riding place.

[10] When then Negus Menelik submitted to Emperor Yohannes IV in the treaty of Wadara of 1878, it was also stipulated that the capital of Shewa would be moved from Liche to Debre Birhan.

[12] On 2 July 1994 it was broadcast that nine people were killed and eleven captured in an exchange of fire with security forces in Asagirt woreda.

According to the police, Andale Melaklu, the Debre Berhan representative of the All-Amhara People's Organization was one of the "bandits" killed in the fire exchange.

[12] Based on the 2007 national census conducted by the Central Statistical Agency of Ethiopia (CSA), this town has a total population of 65,231, of whom 31,668 are men and 33,563 women.

The majority of the inhabitants practiced Ethiopian Orthodox Christianity, with 94.12% reporting that as their religion, while 3.32% of the population said they were Muslim and 2.15% were Protestants.

The Derg government announced 3 February 1975 that the Debre Birhan Wool Factory was among 14 textile enterprises to be fully nationalised.