Susquehanna Township was established during the December 1838 sessions of the Pennsylvania General Assembly.

The first settlers arrived in 1801 and cleared the alluvial plain near the West Branch Susquehanna River and began farming.

The village of Nisbet, a collection of about a dozen homes, rose up around the railroad station of the same name.

The village of Nisbet underwent an expansion during the 1950s and 1960s and now serves as a bedroom community for Williamsport and Jersey Shore.

Farmers rent out small portions of their property for the docking of recreational boats on the West Branch Susquehanna River.

Across the West Branch, Woodward Township is to the north and the city of Williamsport is to the northeast.

The ridgecrest of Bald Eagle Mountain forms the southern border of the township.