Beginning in 1829, the Ho-Chunk, sometimes referred to by the exonym, Winnebago (which is derived from the French "Ouinipegouek," or "People of the Stinking Water") experienced massive amounts of pressure from European and American settlers as their land was opened for agriculture and lead mining.

These treaties, accompanied by colonizing pressure and xenophobic fears rising from the Dakota War of 1862, forced the tribe West from their land across the Mississippi River.

[6][7] Settlement in Dane County began in 1828 when Ebenezer Brigham discovered a lode of lead in the Blue Mounds area, and established a tavern and inn.

In 1849, the tract of land that would become Mount Horeb was purchased by James Morrison, and a year later sold a portion to Granville Neal.

This initial settlement largely drew individuals of English, Irish, German, and Scottish ethnic backgrounds, as well as Yankees and settlers from Southern states.

In 1861, the first post office in Mount Horeb was established in the home of English immigrant and Methodist Episcopal lay minister George Wright.

The "Mount" portion of the name is said to be inspired by the surrounding geography, while "Horeb" is derived from the Biblical location wherein the prophet Moses received the Ten Commandments from the Judeo-Christian-Islamic God while leading the Jewish people through the Sinai Peninsula on their exodus out of Egypt.

[10][11] The presence of Norwegian immigrants has played a significant factor in the historic and contemporary identity of not only Mount Horeb, but the State of Wisconsin.

The first Norwegian immigrant to arrive in the Wisconsin Territory was Ole Nattestad, from the Numedal valley east of Telemark in 1838, establishing Jefferson Prairie near Beloit.

[12] Norwegian-immigration historian Odd S. Lovoll observes that by the 1870s, Norwegian immigrants had created significant settlements throughout Wisconsin, particularly in Dane County.

[13] In 1871, Andrew Levordson became the first Norwegian immigrant to arrive in Mount Horeb, marking the beginning of this ethnic-group's presence in the village.

[14] Although Mount Horeb had large Norwegian and Norwegian-American ethnic populations, the community also chose to display its identity through multiple forms of museums, performances, and tourist oriented ideas.

In 1926, Isak J Dahle, an insurance agent from Chicago, Illinois, but who was raised in Mount Horeb, purchased the site and renamed the farmstead Nissedahle.

Nisse (see Tomte), in Norwegian folklore traditions, are playful elves that provide assistance to humans when kept in good spirit.

Over the years, Dahle converted the site into a living history museum, creating an idealized folk version of Norway.

After returning from a trip abroad to Scandinavia, Mount Horeb resident and artist, Oljanna Cunneen, suggested to that hosting a festival centered on a performance of ethnic identity may be a "fun" endeavor for the community to engage.

[16][17][18] During the 1980s, as part of an effort to continue celebrating their Norwegian and Norwegian-American heritage, as well as a reaction to the construction of the Business Highway 18/151 bypass, Mount Horeb transformed itself into the "Troll Capital of the World."

These trolls featured in Mount Horeb hearken to this tradition, and residents have incorporated these playful, often numbskull, characters throughout the village.

"[20] The "Trollway" originated from the Chamber of Commerce's attempts to draw traffic away from the bypass and back into the center of town to promote local businesses.

While including parts of southeastern Minnesota, northeastern Iowa, and northwestern Illinois, the Driftless Area is a distinct feature of the Wisconsin landscape, stretching across eighteen different counties.

In her analysis of place name in the Driftless Area, folklorist Janet Gilmore observes that, "travelers who cross in and out of the territory today will note how its distinctive contours and impressive views emerge from wider, flatter expanses to the east, south, west, and north.

Mount Horeb is located approximately twenty miles southwest of the state capital, Madison, which is also home to the University of Wisconsin–Madison.