In the middle of the 18th century deposits of gold and silver were discovered, and the area was settled.

The settlement became the town Vila de Paracatu do Príncipe by royal charter in 1798.

[4][5] Kinross Gold owns the open-pit Paracatu gold mine operated as Kinross Brasil Mineração S.A. that includes two process plants, two tailings facilities, as well as accompanying infrastructure.

The main breeds are: Zebu (Gir, Indu-Brasil, Guzerá and Nelore), Girolanda, Frisian and Brown-Swiss.

Because of new technologies used to develop the cerrado, agriculture in Paracatu became efficient and profitable in many properties.

The planted area of some of the main crops in hectares was: Many quilombola (descendants of escaped slaves) communities live in and near Paracatu, often in poverty.

[15] The city is served by Pedro Rabelo de Souza Airport.