It is home to the Massachusetts Correctional Institution – Shirley, a medium-security state prison.

The inhabitants at the time of European encounter were Nipmuc (or Pennacook) Indians, who called the area Catacunemaug.

In 1753 it separated from Groton and was incorporated, named in honor of William Shirley, governor of Massachusetts (1741–1757).

Other local products included iron, nails, textiles, rope, belts, suspenders, and athletic equipment.

A medium-security state prison was built on land surrounding the remains of the Shaker village in Shirley, and continues to operate.

The town also operates a Senior Center located at 9 Parker Road, which previously was a preschool/kindergarten.

Commuter rail service from Boston's North Station is provided by the MBTA with a stop in Shirley on its Fitchburg Line.

[27] The Montachusett Regional Transit Authority (MART) supplies Councils-On-Aging service for elderly and disabled residents.