Nestled in the foothills of the beautiful and historic Blue Ridge Mountains with South Mountain in its backyard, Dillsburg has been and is a good place to call "home".

At one time the settlement was known as Monaghan Settlement, at other times it was Dill's or Dills, Dillstown and even Dillston. Then, at its incorporation on April 9, 1833, it officially, and probably finally, became known as Dillsburg. It was named in honor of the chief of the earliest settlers, Matthew Dill, who located here about 1740. He came from the county of Monagahan, Ireland. In 1749 Matthew Dill became one of the court justices of York County and before this he had commanded a company against native Indian opposition. He died October 13, 1750 at the age of 52.

The exact date of the earliest settlement in or near Dillsburg is uncertain. It is noted, however, that Captain Matthew Dill's name appeared in the records of Chester County, Pennsylvania, as late as 1735. It should be noted that the lands within the present limits of York County were, at one time, a part of Chester County. They later became part of the new Lancaster County and finally in August 1749 York County was established "West of the Susquehanna" and was separated from Lancaster County.

One of the townships that was laid out before 1749 was Monahan (later Monaghan), including the area now comprising Dillsburg. Since the land west of the Susquehanna was purchased from the Indians in 1736 and, since it is recorded that preaching services were held locally as early as 1737, it may be concluded that the approximate date of settlement is between 1735 and 1740.

Records show that Thomas and Richard Penn, Esquires, and Proprietaries and Governors of the Province of Pennsylvania, granted to Captain Dill, for a sum of money, a tract of land containing 504 acres. It was on these 504 acres that early settlement took place and, on part of them, then owned by heirs of Captain Dill that Dillsburg eventually was laid out.