Montagu was founded on the farm "Uitvlugt" in 1851, and is known for its hot mineral springs and scenic mountains.

It is also an agricultural centre, where orchards and vineyards are in production and local herbs are grown.

The farming area, 'Koo', lies north of the town and is famous for the quality of its apples, pears, apricots and peaches.

Popular crags for rock climbing include Legoland, The Steeple and Bad Kloof.

[citation needed] The author Francis Brett Young spent his final years in Montagu.