The city was chartered in 1843 and named after Colonel Isaac Shelby, a hero of the battle of Kings Mountain (1780) during the American Revolution.

In 1916, Thomas Dixon, Jr., the author of The Clansman: A Historical Romance of the Ku Klux Klan, planned to erect a statue of his uncle Leroy McAfee on the courthouse square.

[6][7] The project was initially met with enthusiasm,[6] until it was announced that Dixon wanted the statue to be wearing a Ku Klux Klan mask.

Nevertheless, the Ku Klux Klan did have a significant presence in Shelby in the 1870s and its crimes were the subject of depositions[8] and affidavits[9] collected by Captain Albion Howe (1841–1873) of the 4th Regiment Artillery.

Textiles later became its chief industry during the 1920s, when production of cotton in Cleveland County rose from 8,000 to 80,000 bales a year.

People from surrounding counties came to Shelby to shop, since there were numerous types of local and chain stores.

In the 1950s, droughts, insect infestations, and government acreage controls resulted in the decline of cotton as Cleveland County's primary crop.

Re-branded as "uptown" in the 70s to bring town-people back off the highway and away from the mall, this area has been named a "Main Street" by the National Trust for Historic Preservation.

Monthly summer festivals like Shelby Alive and Seventh Inning Stretch, hosted by the American Legion World Series, brings regional music acts to perform in the city.

[13] With a low cost of living and a vibrant small town environment, Uptown Shelby has experienced a 10% growth in street level occupancy from 78% to 88%.

[14] Uptown Shelby hosts opportunities for active living with groups that engage in cycling, running, crossfit, and yoga.

[15] Shelby is known throughout the state for its collaborative methods between private, non-profit, and public sector organizations with groups like Leadership Cleveland County.

In 2011, Shelby was named the permanent home of the American Legion Baseball World Series after decades of rotating venues for the event.

Commercial air service is provided within a 2-hour drive at Charlotte (CLT), Asheville (AVL), Concord (USA) and Greenville/Spartanburg (GSP).

[32] On November 11, 2007, the Oxygen Network's "Captured" aired a profile of The Brenda Sue Brown murder mystery that took place in Shelby in 1966.