Madison was mostly a small city for many years, with its population being around 400-500 for much of its history until the Redstone Arsenal was established to the southeast, which attracted many people to the area for jobs.

The city was originally known as "Madison Station", as it developed in the 1850s around a stop of the Memphis & Charleston Railroad.

Textile mills were built in the area in the late 19th century for processing and manufacture of cotton products.

Patterson's men captured the 13th Illinois Regiment's wagon train, taking 66 prisoners.

They skirmished with Patterson's rear guard that evening at Fletcher's Ferry on the Tennessee River south of Madison.

In World War II and the postwar period, military and NASA operations were moved to Huntsville, stimulating an increase in population in the region.

Subsidized highways stimulated suburbanization, attracting residents to outlying areas where new homes were built.

In the late 20th century, Madison's population increased rapidly as it developed as a suburb of Huntsville.

It is a subsidiary of Hexagon, a Swedish software company that bought Intergraph in 2008 and invested in the city and area to improve it.

Thousands of Madison residents commute to jobs at Cummings Research Park and Redstone Arsenal in nearby Huntsville, about 12 miles away.

The high-tech and academic positions in the area have attracted numerous highly educated, professional residents.

[16] Madison Elementary, built about 1936, is the oldest school in the system while Journey is the newest, opening in 2023.

In 2019, Madison residents approved a voluntary property tax increase in order to fund school growth and expansion.

Dial-a-ride transit service is provided by Transportation for Rural Areas of Madison County (TRAM).

[26] Madison is working with the nearby cities of Huntsville and Decatur to create a 70-mile bicycling and walking trail.