An urban settlement was established here between 1659 and 1662 as Tsaryovo Gorodishche (Царёво Городи́ще, meaning Imperial Citadel) by Timofey Nevezhin, a farmer from Tyumen.

It served as a frontier post and its fortified position enabled it to defend other Russian settlements from nomad attacks.

[citation needed] The present name is taken from a large kurgan (burial mound) close to the original settlement.

It is also home to Russian Ilizarov Scientific Center for Restorative Traumatology and Orthopaedics, KAvZ autobus plant, and the machine building company Kurganmashzavod which produces the widely known BMP-1, BMP-2 and BMP-3 infantry fighting vehicles.

Summers are variable but relatively moderate, even though heat waves can bring temperatures well above the 26 °C (79 °F) average July highs.