The Inn experienced British occupation during the American Revolution and played host to members of the Continental Congress when it met in nearby Nassau Hall.

The Inn quickly became the center of town life, and with its location on the King's Highway, at the midpoint between New York City and Philadelphia, played host to many of the notable figures of colonial America, including Paul Revere, Robert Morris, and Thomas Paine.

In 1846, a new building, known as Mansion House, was built by noted local builder/architect Charles Steadman on the east side of the original structure, which then became known as the west wing.

The new Inn was built facing the square and has itself come to be considered historic with its fine interiors and Norman Rockwell mural in the Yankee Doodle Tap Room.

The restaurant, the Yankee Doodle Tap Room, is open for breakfast, lunch, and dinner, and the bar and lounge area has a fireplace.

The Nassau Inn is frequently mentioned in F. Scott Fitzgerald's debut novel This Side of Paradise when the protagonist Amory Blaine attends Princeton University.