Hakone is a notable spa town and a popular tourist destination due to its many hot springs being within view of nearby Mount Fuji, the most visited mountain in Japan.

Most of the town is within the borders of the volcanically active Fuji-Hakone-Izu National Park, centered on Lake Ashi.

During the Genpei War, after his defeat at the Battle of Ishibashiyama in neighboring Manuzuru, Minamoto no Yoritomo prayed at this shrine for victory over his enemies.

During the Meiji period, the area developed into a summer resort for the wealthy of Tokyo and the foreign settlement in Yokohama.

Hakone has a mayor-council form of government with a directly elected mayor and a unicameral town council of 14 members.

In terms of national politics, the town is part of Kanagawa 16th district of the lower house of the Diet of Japan.

Hakone is noted for its onsen hot spring resorts, which attract both Japanese and international visitors, due to its proximity to the greater Tokyo metropolis and to Mount Fuji.

Major events include the annual JLPGA CAT Ladies Golf tournament and the Hakone Ekiden, a long distance collegiate foot race, held at the New Year, which runs from Tokyo to Hakone and back over two days, partly in commemoration of the couriers who ran the Tōkaidō road.

[8][9] In 2020, new decorations were introduced to the city in the anticipation of the release of the final film of the Rebuild of Evangelion tetralogy.