New Albany was founded in 1840 at the site of a grist mill and sawmill on the Tallahatchie River near the intersection of two Chickasaw trade trails.

[6] During the Civil War, the United States Cavalry under Benjamin Grierson passed through New Albany on their way to raid Vicksburg, when they encountered Confederate troops attempting to destroy the bridge over the Tallahatchie.

[10] In 2013, a section of railroad was paved to become the Tanglefoot Trail, following the path of a rail that was once operated by author William Faulkner's grandfather.

[11] In 1925, L. Q. Ivy, a 17-year-old African American boy, was accused of beating and raping a 21-year old White woman.

As of the 2020 United States Census, there were 7,626 people, 2,971 households, and 1,911 families residing in the city.

The New Albany High School Bulldogs boys basketball team won consecutive state Class 3A titles in 1985,[21] 1986,[22] and 1987.

New Albany is connected to Ripley in the North and Pontotoc to the South by State Highway 15.

New Albany was once a stop for Gulf, Mobile and Ohio's famous "Rebel" streamlined passenger train.

The town serves as the northern terminus of the Tanglefoot Trail, a major rail-trail within the state.