After the Saxon colonisation of Transylvania, Tălmaciu was the administrative center for the settlements of Tălmăcel, Boița, Turnul Roșu, Racovița, Sebeșul de Jos, and Plopi.

Because using the Olt Pass to the south requires passing through Tălmaciu, it has witnessed numerous historical events: On 29 August 1916, during the Battle of Transylvania, Tălmaciu (then part of the Hungarian half of Austria-Hungary) was occupied by General Ioan Culcer's Romanian 1st Army.

In the middle of September, Culcer moved the I Corps headquarters to Tălmaciu, to direct the operations of the two divisions located there.

[3] Tălmaciu also served as the air base for the 1st Army's squadron, consisting of (depending on source) 3 or 6 aircraft.

[4][5] Industrially, Tălmaciu is home to one of the most important thread manufacturers and spinners in Romania.