The name of the village (as well as that of neighbouring Unterammergau) appears in a well-known German tongue-twister, often sung as a round: About half the inhabitants of Oberammergau took part in the once-a-decade Passion Play in 2010.

The streets of central Oberammergau are home to dozens of woodcarver shops, with pieces ranging from religious subjects, to toys, to humorous portraits.

Oberammergau is also famous for its "Lüftlmalerei," or frescoes, of traditional Bavarian themes, fairy tales, religious scenes or architectural trompe-l'œil found on many homes and buildings.

Lüftlmalerei is common in Upper Bavaria and its name may be derived from an Oberammergau house called Zum Lüftl, which was the home of facade painter Franz Seraph Zwinck (1748–1792).

In October 1943,[6] the barracks were taken over by the Messerschmitt company as a research and development site; 37 km (23 mi) of tunnels were bored into the neighboring Laber mountain for engine production facilities, and a winter sports hotel was also taken over.

[7] At the end of the Second World War, the Messerschmitt design department was visited by both U.S. and British scientific missions, as well as by teams from Bell (who stayed for five weeks) and de Havilland.

[8] Among the German staff interviewed by the Fedden Mission were Woldemar Voigt, Messerschmitt's chief designer, Hans Hornung, and Joseph Helmschrott.