Developed on the east bank of Loyalsock Creek near the former native village of Otstonwakin, the borough is named for Andrew Montour, the French/Native American and son of Madame Montour, a Native American interpreter and negotiator who served the British colonial government in New York and Pennsylvania during the early eighteenth century.

Her son also became influential as an interpreter and negotiator, serving colonial governments in Pennsylvania and Virginia, including during the French and Indian War.

Otstawonkin was a native village located at the mouth of Loyalsock Creek on the West Branch Susquehanna River.

The Great Shamokin Path ran along the west bank of the river, where late 20th century archeology has shown the village was mostly located.

For example, Count Zinzendorf, a missionary guided by Conrad Weiser with the permission of Oneida chief Shikellamy, came to Otstonwakin in 1742.

)[8] Speaking French and English, as well as Algonquian and Iroquoian languages, she became highly influential in New York, and acted as Governor Robert Hunter's personal interpreter.

Madame Montour continued to have influence as a friend of the British, representing the Iroquois and other native peoples of the area.

Believed to have been born in Trois-Rivières, Quebec, Madame Montour grew up in the province of New York, where she served as an interpreter to the British.

The British colonial government was known to be sometimes laggardly in paying her for her services, making her wait one time a year for payment.

Comfortable with both Native Americans and Europeans, he made a good living as an interpreter for local tribes and settlers.

In 1742 when Count Zinzendorf met Montour, he described him as looking "decidedly European, and had his face not been encircled with a broad band of paint we would have thought he was one."

Andrew Montour left Montoursville at some point and moved to Juniata County with his mother before finally settling on Mountour's Island in the Allegheny River near Pittsburgh.

[9] John Burrows gained credit as the founder of Montoursville because he sold lots to other settlers, as well as achieving political power and wealth.

He built up capital to make an invest in land near the mouth of Loyalsock Creek, which was developed as Montoursville.

In the 21st century, the large recreational park has several miles of hiking and biking trails, numerous softball fields, picnic areas and pavilions, and fishing ponds.

Visitors from Williamsport would board the trolley in downtown and ride to Indian Park to spend a day of recreation along the banks of Loyalsock Creek.

The amusement park was closed in 1924 due in large part to the seasonal costs of reconstruction of infrastructure following the annual floods on Loyalsock Creek.

Montoursville was disproportionately affected by the explosion of TWA Flight 800 on July 17, 1996, off East Moriches, New York, as 21 of the 230 passengers were Montoursville-area residents.

[15][16] Condolences were also sent by President Bill Clinton, the U.S. softball team at the Atlanta Olympics, and François Bujon de l'Estang, French ambassador to the United States (1995–2002).

A memorial was erected on the grounds of Montoursville High School composed of a statue of an angel sculpted by James Barnhill of Asheville, North Carolina on a base engraved with the names of the 21 local victims and a brief recounting of events.

The 16 students were Jessica Aikey, Daniel Baszczewski, Michelle Bohlin, Jordan Bower, Monica Cox, Claire Gallagher, Julia Grimm, Rance Hettler, Amanda Karschner, Jody Loudenslager, Cheryl Nibert, Kimberly Rogers, Larissa Uzupis, Jacqueline Watson, Monica Weaver, and Wendy Wolfson.