Fort Loramie was established as a fur trading post in 1769 by Pierre-Louis de Lorimier (usually anglicized to Peter Loramie), a French-Canadian fur trader, British Indian agent and Shawnee agitator, and his father.

The Shawnee used the trading post as a staging area for attacks against Americans during the Revolutionary War.

During a raid on the Shawnee by George Rogers Clark in Nov. 1782, the trading post was attacked by a detachment of 150 men under Col. Benjamin Logan and burned to the ground.

It was originally a stockade, but Wayne decided that a blockhouse and storage buildings were more vital.

The fort stood on the portage between St. Mary's River and Loramie Creek a half mile north of the present town.

In 1815, the United States sold the fort to James Furrow, who constructed a post office and tavern out of the buildings.

The site today is a farm belonging to the heirs of James Furrow.

Canal boats hauled the limestone for the foundation of St. Michael’s Church, built by German Catholic settlers starting in 1849.

The settlement languished in the early years: the first flour mill and a general store, Willman's, were built in 1858.

One relic is Loramie Lake, the reservoir used to keep the canal filled with water.

According to the United States Census Bureau, the village has a total area of 0.96 square miles (2.49 km2), all land.

22.7% of all households were made up of individuals, and 11.0% had someone living alone who was 65 years of age or older.

The racial makeup of the village was 99.7% White, 0.1% African American, 0.1% Asian, and 0.1% from two or more races.

Fort Loramie is home to an annual three-day-long festival in the summer, Country Concert,[10] which attracts thousands of people from around the United States and Canada.