The name Katrineholm comes from a ducal residence with this name, after Catherina Gyllenhorn who lived there.

Katrineholm used to have a strong industrial sector, with several multinational corporations such as Ericsson and Scania contributing to its economy, but in the 1990s some of these companies reduced their workforce in Katrineholm.

Today, many residents work elsewhere, particularly in Stockholm, as the train connection between Katrineholm and other major cities is fast and comfortable.

The Federation of International Bandy has an office in Katrineholm.

The 1985 movie On the loose, featuring the Hard Rock band Europe has its history set in Katrineholm.