[6] The town and the county are named after Wade Hampton III, a Confederate general in the Civil War.

In appreciation for helping to end the Reconstruction Era and leading the Democratic Party, the county was named after the sitting governor, Wade Hampton III.

The central three-block main street which ran between the courthouse block and the rail depot was named Lee Avenue.

Hampton prospered due to its connections with local agricultural fields and became an important depot along the railway.

Additional economic development came in the form of industry, with Plywoods-Plastic opening a major facility northwest of town for pulp production.

IP sold the site to Nevamar, and the facility remained one of the county's largest employers until its closure in late 2014.

[9] In recent years, auto-oriented commercial development was focused on the outskirts of town, leaving the original downtown without much activity.

The town of Hampton has attempted to bring back commercial and civic activity to Lee Avenue and has undergone a multi-phased streetscape project, which has rendered some success in luring back businesses to downtown.

U.S. Route 278 passes through the center of Hampton as Elm Street; the highway leads northwest 10 miles (16 km) to Fairfax and southeast through Varnville 30 miles (48 km) to Ridgeland.

The main event of the festival is the parade held on Saturday that runs from Varnville to Hampton.

As of the 2020 United States census, there were 2,694 people, 1,139 households, and 595 families residing in the town.