It is most famous as the location of Matsushima Bay, one of the Three Views of Japan, and is also the site of the Zuigan-ji, Entsū-in and Kanrantei.

The area of present-day Matsushima was part of ancient Mutsu Province and has been settled since at least the Jōmon period.

With the establishment of Tagajō in the Nara period, Matsushima was part of the Yamato colonization area in the region.

Matsushima has a mayor-council form of government with a directly elected mayor and a unicameral town council of 14 members.

In terms of national politics, the town is part of Miyagi 5th district of the lower house of the Diet of Japan.