It hosts many hotels and restaurants for tourists, and the important B'doul settlement of Umm Seyhoun, created after the community's forced displacement in 1985, is approximately 2 kilometres (1 mi) from the town.

During the Crusader period, the area was part of the Lordship of Oultrejordain and was defended by the castle, li Vaux Moysi.

During the Arab Revolt, Turkish forces under the command of Mehmed Djemal Pasha attacked Wadi Musa on 21 Oct. 1917.

[1] Most of the town's population belongs to the Liyathnah tribe, whose members play leading roles in the region's economy and politics and dominate the local tourism industry since the 20th century.

The campus of the College of Archaeology, Tourism & Hotel Management of Al-Hussein Bin Talal University is located in Wadi Musa.