Originally home to the Siwanoy and Kitchawong Indians (Mohican tribes, a subgroup of the Algonquians), the town takes its name from a tribal "pound" or enclosure for game that was on one of the area's many "ridges". The Indians led a relatively peaceful life of planting, hunting, and fishing.

Pound Ridge was originally settled in 1640's as part of a tract of land purchased from local Indians by Captain Nathanial Turner, and it was officially incorporated in 1788. For the last 250 years there has been much controversy over the spelling of "Pound Ridge" or "Poundridge", but finally in 1948 the Town Board declared the name to be the two-worded version.

During the Revolution in 1779, Pound Ridge was the scene of the dramatic raid led by the British Lt. Col. Banastre Tarleton (his portrait by Sir Joshua Reynolds shown at right). He overwhelmed the local militia commanded by Major Ebenezer Lockwood and the regiment of Continental Light Dragoons (mounted infantry) led by Lt. Col. Elisha Shelton stationed in the Hamlet area. Fortunately, Tarleton got a bit lost finding Pound Ridge, which enabled the Americans more time to prepare. However, with better than a 2 to 1 advantage, Tarleton (a.k.a. "The Butcher") conquered, plundered, and burned much of the town.

The reinforcements arrived, fought back and chased Tarleton away. This all happened on July 2, 1779.

After the war, Pound Ridge continued to flourish. Saw mills, grist mills, blacksmith shops, and general stores were built. By 1850, the population reached 1,486.

Although a dairy farming community, Pound Ridge became known for hat and shoe making (at right are typical Lancaster clogs made by Charlie Scofield aka "Blind Charlie", one of the 141 cordwainers).

The current population of the residents of the Town of Pound Ridge, NY includes 4,918 people (2004 US Census) living mostly in single-family dwellings on 2 or 3-acre minimum zoning districts.