Abenaki Indians called the falls Anmecangin, meaning "much fish".

The area was once part of Little River Plantation, a portion of which was incorporated in 1799 as Thompsonborough, then renamed in 1802 after Lisbon, Portugal.

With water power from the Androscoggin River, Lisbon Falls became a small mill town.

[4] Especially well known were its vicuña wool products, which became famous when President Eisenhower's Chief of Staff, Sherman Adams, received a vicuna sport coat as a gift from a wealthy industrialist and had to resign due to the resulting scandal.

The town's primary employment[citation needed] was at a gypsum mill, which closed in 2009.

Moxie Days in Lisbon Falls is attended by thousands from around the world each summer.

22.6% of all households were made up of individuals, and 7.3% had someone living alone who was 65 years of age or older.