[2] Millinocket's economy has historically been centered on forest products and recreation, but the paper company closed in 2008.

The area was settled in 1829 by Betsy and Thomas Fowler and their family, who cleared land for a farm near Shad Pond.

In 1846, Henry David Thoreau hired members of the Fowler family as guides on a trip to Mount Katahdin, which he wrote about in The Maine Woods.

When the Bangor and Aroostook Railroad extended service to Houlton in 1894, the line ran through the area, opening it to development.

Charles W. Mullen,[4] an engineering graduate from the University of Maine, proposed a hydroelectric dam on the Penobscot River.

He recognized the falls as an ideal water power source to operate a large pulp and paper mill.

[5] After securing land rights, the chosen site was at the junction of the West Branch of the Penobscot River and Millinocket Stream, where it stands today.

The term "bonded" in this case referred to the fact that the Italians owed for the passage to the U.S. and were in debt as soon as they set foot in this country.

Since then, the mill town has struggled to reshape its economy, while receiving significant help from the state government and local economic development efforts.

In addition to the traditional forest products industry, Millinocket has been growing a service economy, and has grown into a major four-season tourist attraction.

The region is served by the Millinocket Municipal Airport, which sells both 100LL avgas and jet fuel.

Millinocket is the closest town to Mount Katahdin, in Baxter State Park, 20 miles (32 km) to the northwest.

At an elevation of 5,270 feet (1,610 m), its summit is the highest point in Maine and the northern terminus of the Appalachian Trail.

In 2015, Gary Allen, a long-distance runner and race director, founded the Millinocket Marathon and Half.

As an Adult Hits/Full-Service radio station, WSYY-FM airs a format consisting of a mix of oldies/classic hits, adult contemporary, rock music, and some country crossovers, airing the format for approximately 16 hours per day, from 6:00 am through 10:00 pm ET (reserving the first and, also, the final hour of their broadcast day to When Radio Was).

Millinocket was home to the Discovery Channel TV show American Loggers which showcased the logging efforts of Gerald Pelletier Incorporated.