The city is situated on the site of the ancient Numistri, at the foot of the Apennines, the scene of a clash between Hannibal and Marcellus' forces in the Second Punic War in the year 210 BC.

In retaliation, national guards, soldiers and citizens, deployed in naturally strong positions, welcomed Crocco's men with shots, disrupting their formations that were forced to flee after suffering heavy losses.

On 4 October 2012, the President of the Italian Republic Giorgio Napolitano accepted the request of Interior Minister Anna Maria Cancellieri which gave Muro Lucano the honorary title of City.

The city of Muro Lucano is composed of the old town and the surrounding areas of Cappuccini to the north and Giardini (meaning gardens) to the south.

Muro Lucano rises 650 metres (2,130 ft) above sea level, occupies a surface area of 125.7 square kilometres (48.5 sq mi) and in 2005 had a population of approximately 6,000.